Mass Affluent investors with a net worth between $100,000 and $1 million, 57 percent plan to go with the more conservative choice of putting their money in checking and savings accounts while 31 percent plan to invest in equities.
Among UHNW investors, 37 percent plan to invest international investments such as stocks, mutual funds or other products based outside the U.S. and 37 percent also say they will invest in money market funds. In both cases, those objectives are higher than investment plans for Millionaires or the Mass Affluent.
The UHNW investors also favor fixed income investments such as individual bonds or bond mutual funds (32 percent) and certificates of deposit (23 percent).
Following checking and savings accounts and equities, Millionaires are next most likely to go for money market funds (36 percent) and international investments (28 percent). The Mass Affluent investors usually make different choices than the wealthier investor, but 29 percent are going to invest in money market funds and 26 percent in certificates of deposit.
A Spectrem’s Millionaire Corner study finds that 60 percent of Ultra High Net Worth investors with a net worth between $5 million and $25 million are going to invest in equities in the next 12 months. Only 51 percent of UHNW investors plan to put additional funds into checking or savings accounts over the same period.
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