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How the Wealthy Invest

A closer look at their portfolios reveals a striking trend—HNWI and Accredited Investors allocate a larger proportion of their wealth to alternative and exclusive investments, which are typically inaccessible to the average person.

Investment Focus by Segment​

  1. Accredited Investors:

    • 13% allocated to alternative assets like private equity and hedge funds.
    • 23% in equities, 15% in fixed income, and 49% in savings or mutual funds.

  2. High-Net-Worth Individuals (HNWIs):

    • 15% in real estate, 13% in alternative assets, 23% in equities, and 15% in fixed income.

  3. The Rest of the Population (93%):

    • Predominantly (75%) allocated to savings or mutual funds.
    • Minimal exposure to equities (10%), real estate (5%), alternative assets (2%), and fixed income (8%).

The disparity lies in access—HNWI and Accredited Investors can allocate more funds to exclusive asset classes that are out of reach for most people. Besides that, the current financial systems are stacked against the average person, especially those outside of a few privileged countries.