Where do high net worth individuals invest their money?

24/04/2014
Wealth management is a primary concern for any investor, but those with a high net worth are likely to be particularly cautious about where they invest large amounts of money.

Some types of investment have long been firm favourites with these groups - hedge funds and foreign exchange, for example - but where are the most popular destinations for investment dollars at the moment?

The Investment Trends 2013 High Net Worth Investor Report suggests that big investors showed a particular interest in direct listed shares last year, while cash and term deposits proved less popular.

Hybrid securities were also higher up on investors' agendas, while there was also an increase in the number of exchange-traded funds being used.

Interestingly, international investments have seen a surge in popularity. Half of investors now have some interest overseas, which marks a rise from 40 per cent in 2009.

Any successful investor needs to have a sound understanding of where their money is and how well it is performing, no matter how much or little of it they have chosen to invest.

Not only this, they should also be aware of the impact that fees and taxes will have on their decisions and be able to adapt their portfolios accordingly.

Investments won't look after themselves, which is why it is so important for high net worth individuals to take an active interest in how their money performs - or have someone do it on their behalf.

No matter what strategy high net worth investors choose, it is worth seeking investment advice to ensure it is the right one for their needs.

There is no substitute for tailored advice and a professional should be able to point you in the right direction for your short and long-term financial goals.