7 out of 10 high-net-worth individuals are planning to invest more in 2016

A recent deVere Group survey reveals that three quarters of high-net-worth individuals plan to increase contributions in their investment portfolios during the first half of 2016.

When asked the question: “Do you intend to invest more in the first six months of 2016?”  76 per cent of clients said Yes, 14 per cent said No and 10 per cent didn’t yet know.
To my mind, the results of this survey highlight the fact that high-net-worth individuals are now eager to use cash held in reserve to top up and diversify their investment portfolios.

The poll shows these investors are aware of the opportunities available to purchase high quality equities at a more desirable price.  They’re identifying far more favourable options in order to enhance their portfolios over a longer period of time.

Naturally, it is a sensible investment strategy to invest cash in the market at a time when prices are comparatively low.  Making the most of the attractive long-term performance of stock markets is a long standing way for investors to successfully accumulate wealth.

It’s also well known that it’s impossible to accurately predict what the markets will do in the immediate future, or indeed if this is the bottom of the market.  However, this survey shows that HNW investors are confident that the market is close to the bottom, and as a result there are major buying opportunities.

Whilst it seems as though a large number of high-net-worth investors undeniably kept their powder dry last year – as markets rose and dropped, and we prepared for the first Fed rate rise in nearly 10 years – any investor concerns prevalent in 2015 have now been countered by far more attractive prices.

As such, investors are clearly distancing themselves from a careful approach by diversifying their portfolios, which following decades of financial market data, is the right way to approach risk management.

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