Quantcast
The MFWire
Manage Email Alerts | Sponsorships | About MFWire | Who We Are

Subscribe to MFWire.com's News Alerts [click]

Rating:Funds Not Just for Moms and Pops Not Rated 0.0 Email Routing List Email & Route  Print Print
Tuesday, July 20, 2004

Funds Not Just for Moms and Pops

News summary by MFWire's editors

The number of times that regulators and legislators commented on how important mutual funds are to small potatoes investors during the fund scandals probably number in the hundreds.

A report issued by the Spectrem Group last week, however, reminds us that the wealthy invest in funds, too. Despite the availability of better-suited products and greater knowledge about investing, those with $500,000 or more in assets still invest in mutual funds.

The Wealthy Still Invest in Funds
Net Worth (Not Including Personal Residence) % of Investable Assets in Mutual Funds (2002)
$500,000-$999.000 16.1%
$1 million - $3 million 16.6%
$3 million - $5 million 18.8%
$5 million + 18.8%
Source: Spectrem Group
The only more popular product among the $500,000- and-over crowd are investment management products, which are generally stocks and bonds in advisor accounts, explained Tanya McDonald, a director at Spectrem.

Products typically associated with the wealthy, like hedge funds, private placement and other private equity composed only eight to 10 percent of total assets, with 10.3 percent being the highest for the $5 million and over investor.

The reason for the relatively higher participation in funds seems to be that the funds have either been around long enough for people to understand what they are, or the fund industry has done a good job of educating the investing public.

Not Baffled
HNW's Understanding of Investment Products % of Resp. who Understand
Mutual Funds 61.0%
Private Equity 33.0%
Venture Capital 32.0%
Exchange Traded Funds 18.0%
Hedge Funds 17.0%
Mutual Fund Wrap Accounts 15.0%
Separately Managed Wrap Accounts 13.0%
Source: Spectrem Group
Competitive products are not as well understood by the wealthy, with private equity being the next best understood product at 33 percent. Separately managed accounts were the least understood product, with 13 percent. In comparison, 61 percent of high net worth individuals understand mutual funds.

Nearly all of even wealthier participants of the Spectrem Group's UHNW 2003 study understood funds, with 91 percent of investors with $5 to $10 million in assets and 94 percent of investors with $10 million and greater in assets understanding funds.

Although exchange-traded funds (ETFs) are a relatively new product, 18 percent of the wealthy understand the product. "The wealthy have shown an appetite for ETFs," commented McDonald.

 

Edited by: Theresa Sim


Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE

0.0
 Do You Recommend This Story?



GO TO: MFWire
Return to Top
 News Archives
2025: Q3Q2Q1
2024: Q4Q3Q2Q1
2023: Q4Q3Q2Q1
2022: Q4Q3Q2Q1
2021: Q4Q3Q2Q1
2020: Q4Q3Q2Q1
2019: Q4Q3Q2Q1
2018: Q4Q3Q2Q1
2017: Q4Q3Q2Q1
2016: Q4Q3Q2Q1
2015: Q4Q3Q2Q1
2014: Q4Q3Q2Q1
2013: Q4Q3Q2Q1
2012: Q4Q3Q2Q1
2011: Q4Q3Q2Q1
2010: Q4Q3Q2Q1
2009: Q4Q3Q2Q1
2008: Q4Q3Q2Q1
2007: Q4Q3Q2Q1
2006: Q4Q3Q2Q1
2005: Q4Q3Q2Q1
2004: Q4Q3Q2Q1
2003: Q4Q3Q2Q1
2002: Q4Q3Q2Q1
 Subscribe via RSS:
Raw XML
Add to My Yahoo!
follow us in feedly


    Sorry, no records in the database matched your search parameters. Clich back and try again.



  1. Nicsa webinar - New research by Alex Edmans and the Diversity Project - The Power of diverse thinking: How the best teams make decisions, July 1
  2. MFDF Director Discussion Series - Open Forum, July 9
  3. MFDF webinar - Mid-Year Tax Update for Registered Investment Companies, July 10
  4. MFDF Director Discussion Series - Open Forum (Philadelphia), July 15
  5. 2025 MMI Women in Advisory Solutions Forum, Jul 15-16
  6. Nicsa webinar - How Trusted GenAI is Transforming Data Access in Asset Management, July 16
  7. MFDF webinar - M&A and Consolidation in Asset Management, July 16
  8. MFDF webinar - ETF Conversions, July 17
  9. MFDF Director Discussion Series - Open Forum (New York), July 22
  10. MFDF Ask Anything webinar - AI Edition, July 24
  11. MFDF webinar - Use of Derivatives by RICs, July 29
  12. MFDF Director Discussion Series - Open Forum (Columbus, Ohio), August 20
  13. Samfund Soiree Boston 2025, August 21
  14. MFDF webinar - The Audit Committee Chair's Guide to Balancing Duties and Emerging Issues, September 3
  15. ICI ETF Conference, Sep 8-10
  16. Nicsa webinar - Reimagining Reconciliation: AI, Regulation, and Capital Markets Transformation, September 10
  17. MFDF webinar - Series Trust Funds - Compliance and Board Reporting, September 10
  18. MFDF In Focus - Board Oversight of DEI in Current Landscape, September 11
  19. MFDF webinar - MFDF 15(c) White Paper Webinar Series: Part 4 – Enforcement Action Takeaways, September 16
  20. MFDF webinar - Latest in Closed-End Funds Litigations, September 23
  21. MFDF webinar - Fixed Income Insights: Navigating Market Trends & Opportunities, September 24
  22. MFDF webinar - Risk Management Essentials for RICs and Boards, September 29
  23. MFDF webinar - Diligent - Tools for Fund Board Book, October 1
  24. 10th annual Fuse Forum, October 8
  25. MFDF webinar - Essential Strategies in Board Oversight of Operational Risk Management, October 14
  26. 2025 MMI Annual Conference, Oct 15-17




©All rights reserved to InvestmentWires, Inc. 1997-2025
14 Wall Street | 20th Floor | New York, NY 10005 | P: 212-331-8968 | F: 212-331-8998
Privacy Policy :: Terms of Use