Risk, Returns & Private Markets: How Retail Investors Differ from Entrepreneurs in 2025
In a world of shifting markets and new asset classes, where are everyday investors and entrepreneurs putting their money?
Global markets are shifting fast, and so are the people driving them. New research from HSBC’s Global Entrepreneur Wealth Report 2024 and other market studies reveals how everyday investors and business owners are deploying their capital in a post-pandemic, AI-driven world. Both groups are open to taking more risk, but their priorities show a clear divide in how they see growth and stability.
Stocks: Still the Common Language, but with Divergent Commitment
Despite higher valuations, stocks remain the top choice for individual investors. According to HSBC and Morning Consult data, 67 percent of retail investors expect global stock markets to rise in the next 12 months, and 68 percent plan to buy more shares. The favorite sectors remain technology and innovation, with Nvidia, Apple, and Microsoft leading watchlists across both the United States and Asia.
Entrepreneurs are taking a more conservative approach. Only 46 percent currently own stocks, and just 25 percent intend to increase exposure this year. Many are prioritizing their own businesses or diversifying into real estate and private investments instead.
This gap reflects how differently the two groups think about control and return. Retail investors see equities as a primary growth vehicle, while entrepreneurs prefer to allocate toward assets they can directly influence.
Source: HSBC, Morning Consult Data
Crypto is Back in the Conversation
After several years of volatility, crypto assets are regaining attention. EY’s Global Retail Digital Asset Survey 2024 found that 69 percent of investors expect Bitcoin prices to rise, but only 32 percent plan to invest. The curiosity is clear, but commitment remains limited. A key reason is education: 24 percent of respondents said they want to know more about crypto before investing.
Entrepreneurs are slightly more advanced in this space. 44 percent already hold crypto assets, and 27 percent plan to increase their holdings in the coming year. Regulatory clarity in markets such as Singapore and Hong Kong, along with institutional interest from firms like BlackRock, has helped strengthen confidence.
Bitcoin still dominates as a digital store of value, while Ethereum continues to attract developers and capital through its blockchain ecosystem. For most diversified portfolios, a 1 to 2 percent allocation is seen as a healthy way to capture upside without taking on outsized risk.
Private Markets are the Entrepreneurs’ Playground
Private investments have become a defining feature of entrepreneur portfolios. HSBC’s data shows that 46 percent of entrepreneurs already hold private assets, and 41 percent plan to add more. In comparison, only 10 percent of retail investors currently have exposure, with 12 percent considering it in the next year.
The appeal is clear. Entrepreneurs often have access to private equity, venture capital, or direct lending opportunities through their networks. Retail investors, on the other hand, face high entry thresholds and limited liquidity that make these opportunities harder to reach.
That may change soon. According to State Street, 61 percent of Asia-Pacific investors want better access to private markets, and Apex Group reports that 97 percent of global asset managers expect retail participation to grow. Tokenized funds and fractional ownership models could be the bridge that opens this asset class to a broader audience.
Cash and Bonds Regain Their Appeal
Uncertainty around inflation and interest rates has made stability attractive again. Around 28 percent of retail investors and 29 percent of entrepreneurs plan to increase their cash or bond holdings this year. For many, these allocations serve as a safety net in volatile markets and a source of liquidity for future opportunities.
The key is balance. Holding too much cash can erode purchasing power if inflation ticks up, but insufficient liquidity can force untimely selling. Investors are increasingly using short-term Treasury ETFs and money market funds to strike the right mix between yield and flexibility.
MYJ Insight: Portfolio Implications and Strategic Takeaways
The contrast between retail investors and entrepreneurs offers a deeper view of how people perceive opportunity in 2025.
Retail investors remain optimistic about public markets and are doubling down on equities and ETFs linked to innovation and AI.
Entrepreneurs are diversifying beyond stocks, channeling funds into private markets, real estate, and crypto assets they believe in personally.
Both groups are managing volatility more strategically, keeping a portion of their portfolios liquid while leaning into higher-growth segments.
As technology transforms industries and new financial products emerge, investors who combine entrepreneurial foresight with disciplined diversification are best positioned for the next phase of global growth.
For those looking ahead, the takeaway is simple: think like an entrepreneur, invest like an informed strategist.
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