Wealthy investors plan to put their investible funds into equities in the next 12 months, according to a Spectrem report on investor asset allocation.
Spectrem’s Asset Allocation, Product Ownership and Perception of Providers looks at investment decisions past, present and future, with separate reports on each of three wealth segments – Mass Affluent, Millionaire and Ultra High Net Worth.
Sixty percent of UHNW investors – with a net worth of between $5 million and $25 million Not Including Primary Residence – plan to invest in equities, including individual stocks or stock mutual options in the next 12 months. Only 52 percent of Millionaires – with a net worth of between $1 million and $5 million NIPR – plan to invest in equities, and only 31 percent of Mass Affluent – with a net worth of between $100,000 and $1 million NIPR – plan to do so.
Among Millionaires, 55 percent plan to invest in their own checking or savings accounts, slightly above the percentage investing in equities. Among the Mass Affluent, 57 percent plan to put money into checking and savings accounts, by far the greatest percentage of investors in that wealth segment.
For the UHNW investor, after equities and bank accounts, 37 percent plan to invest in money market funds and international investments. Millionaires have similar plans for money market funds (36 percent) with only 29 percent of Mass Affluent investing in money market funds. Only 28 percent of Millionaires plan to invest in the international markets, and only 17 percent of Mass Affluent will look outside the U.S. borders for investments in the next 12 months.
Twenty-six percent of Mass Affluent investors plan to put money into certificates of deposit, and 25 percent of Millionaires are looking at fixed income products such as individual bonds or bond mutual funds. Thirty-two percent of UHNW investors are going to put money into fixed income products, but only 14 percent of Mass Affluent investors will do so.
Investment real estate will attract 20 percent of UHNW investors, 14 percent of Millionaires and 11 percent of Mass Affluent investors.