Alternative mutual fund assets are increasingly on the radar screen of asset managers, both those who handle institutional and retail accounts. 

The latest evidence of the march to alternatives comes from Cerulli Associates, which reveals in an October report that alternative mutual funds will comprise close to 14 percent of all mutual fund assets in the next 10 years.

"Since the financial crisis in 2008, institutions and advisors have been under pressure to increase returns while keeping risk unchanged," said Cerulli Associate Director Michele Giuditta. "As a result, alternative products are attracting interest from retail and institutional investors, as both are increasingly looking for portfolio diversification, enhanced returns and risk management."