Personal investment decisions depend on an individual’s age, wealth and other personal circumstances, as shown by Rice Warner’s recently-published Personal Investments Market Projections 2015 report. The report analyses the $2.2 trillion in investments held outside superannuation and the family home.
Australians have always had a propensity for investing in property and it is no surprise that this is the largest personal asset. There is a similar amount held in cash and term deposits, which is a function of elderly Australians de-risking.
Surprisingly, equities still only represent 10% of personal investments directly held by households, yet those over 75 hold 19% in this asset class.
High net-worth individuals typically hold a significant proportion of their personal investments in direct equities (held in their own names, family trusts and family investment companies) and direct property. This is in addition to wealth in family businesses.
Similarly, high net-worth individuals have held an increasing proportion of their wealth in international investment assets, reflecting globalisation and deregulation of global capital markets.
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