A new Spectrem Group survey of investment preferences among Millionaires finds a cautious mindset that has a majority planning to keep a portion of their moneys in reserve.
Nearly half of investors (47 percent) with a net worth between $1 million and $4.9 million (not including primary residence) indicate they are likely to invest in mutual funds in 2015, while four-in-ten aid they will be investing in equities.
But the highest percentage (54 percent) said they will be holding their money in more conservative checking/savings accounts, with one-third (35 percent) planning to invest in money market funds. Twenty percent plan to invest in certificates of deposit and 7 percent in treasury bills.
One-in-five Millionaires surveyed indicated they would invest in international investments in 2015. This is down from 28 percent last year, an indication of concern over global political instability as well as terrorism fears following the massacre in Paris staged at the offices of satirical magazine Charlie Hebdo and continued reports of atrocities committed by ISIS and Boko Haram.
The highest percentage of Millionaires (19 percent) expressed a preference for investing in Europe. Three years ago, the countries of choice were China and Brazil, both of which have seen reversals of fortune that have dulled their once trendy appeal as emerging markets.
Age is a significant factor in intention to invest. Millennial Millionaires were significantly more likely than their elder counterparts to indicate they would be investing in a variety of vehicles, including:
- Individual stocks (56 percent)
- Exchange Traded Funds (46 percent vs. 22 percent of respondents overall)
- International investments (44 percent)
- Fixed Income, including bonds or bond mutual funds (44 percent)
These more active investors, too, were more likely as well to keep portions of their money in reserve in money market funds (56 percent), certificates of depostir (40 percent) and treasury bills (32 percent).
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