Singapore's wealthy are expected to increase their exposure to risky investments two years from now, with alternative assets leading the pack, a recent study by market analyst Datamonitor shows.

"The changes of investors' conservative mindsets due to the recent global economic crisis is one of the factors causing this shift in asset allocation among HNWs portfolios," said Harry Senlitonga, senior analyst at Datamonitor.

"HNWs in Singapore will focus more on equities and alternative investments, and move away from cash and near-cash products and fixed income," he said.

The crisis has palpably made HNW individuals more cautious about making financial decisions, with investors now getting more involved and hands-on with regard to portfolio allocations. Datamonitor noted that one of the most successful means of getting HNW individuals in Singapore back into riskier products was due diligence into recommended products.

"Wealth managers need to provide not just some assurance through evidence of due diligence, but also evidence of returns from higher risk products," Senlitonga said.

The research was conducted in February to March 2010 and surveyed 84 wealth management companies in Hong Kong, China, India, Singapore and Taiwan.