About 42% of mass retail and 44% of affluent investors responding to the survey said that they had inadequate investment knowledge and understanding of mutual funds.
This compares to 19% of high net worth investors.
“The lack of awareness of mutual funds was apparent across wealth tiers, ranging from mass retail to high-net-worth individuals,” according to the survey.
Investors in the four countries who do have exposure to mutual funds keep it to about 10% of the total portfolio.
“Our data indicate that nearly 65% of investors’ financial assets are locked in liquid cash investments, stocks, and property investments. A plethora of other investment solutions compete for the remaining 35% of assets,” said Shu Mei Chua, senior analyst at Cerulli.
The firm said that the survey suggests “fund managers and distributors have been more effective at educating and disseminating investment information and knowledge to their wealthier clients, and less so to investors in the lower wealth tiers”.
“It also suggests that investment information is more accessible and intimate at higher wealth tiers, as financial advice becomes more proactive,” Chua said.
