WEST PALM BEACH, FL (www.hedgeco.net) – During the past two years, wealthy Americans doubled the percentage of their assets invested in mutual funds, according to a new released study. Spectrem Groupcarried out the new research. According to the group, during the past two years, Americans worth at least $5 million doubled their mutual fund investments. The study also showed that such investorsalso scaled down the level of assets dedicated to alternative investments.
George Walper, president of Spectrem, a Chicago-based consulting group whose firm researches investment trends among affluent people said, �Investors are much more knowledgeable about mutual funds and how they operate and they are comfortable with them.�
The study surveyed about 500 investors during the first three months of 2005, and found many of the surveyed group switched back to mutual funds. According to Walper, they are worried about investment returns. Investors are also switching back to mutual funds because they now believe that the fallout from the mutual fund scandals and issues about corporate governance are basically over. According to the findings of the study, investors have increased their mutual fund investment portfolios to about 12 percent compared to about 6 percent in 2003.
The surveyed group also decreased their hedge fund portfolios from 9 percent in 2003 to 8 percent in 2005. Some investors are also worried about the size of the $8.42 trillion credit-derivatives market, which they believe is riddled with unconfirmed trades, which may undermine investor confidence. But latest data from hedge fund industry trackers show that hedge funds continue to attract new investor money regardless of the problems encountered in the convertible arbitrage strategies.
Paul Oranika
Editor-in-Chief
HedgeCo.Net
Email: Editor@hedgeco.net
HedgeCo.Net is the most popular hedge fund database and community in the world. Membership on HedgeCo.Net is free and easy. We also offer free listings for Hedge Funds!
Be sure to check out our sister sites. www.hedgefundlounge.com, www.hedgefundtools.com, and www.hedgefundemployment.com.
