Wealthy Investors Increase Mutual Fund Holdings
September 26, 2005
Wealthy investors who can afford to invest in hedge funds, private equity and venture capital have turned to mutual funds instead. According to a recent Spectrem Group study, in the last two years investors worth more that $5 million have doubled their mutual fund exposure by increasing these holdings to 12% of their investable assets.
"As financial services firms have worked to provide exciting alternative investments for their wealthiest clients, these investors have chosen to put their money into a far more time-tested vehicle: mutual funds," George H. Walper, president of Spectrem Group, told Dow Jones.
The move into mutual funds can be attributed to the fact that well-off investors have been making more cash deposits, Spectrem reports. Cash deposits have grown to 13%.
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