Millionaire Investors to Start or Increase Usage of Mutual Fund Companies

Eight-five percent of Millionaire investors said they will be investing more conservatively, according to a fourth financial quarter wealth level study conducted by Millionaire Corner. So it is not surprising that these households with a net worth between $1 million and $5 million (not including primary residence) said that of the wide range of institutions offering financial and legal services, they are most likely to start or increase usage of mutual fund companies over this year.

Nearly a quarter (23 percent) of those surveyed said they would be patronizing mutual fund companies, up from 21 percent two years ago.

The next type of institution likely to see an increase of Millionaire business is discount/online brokerage firms (21 percent, down a percentage point from 2009).

Interest in independent financial planners is unchanged over the past two years at 17 percent.

 Twelve percent of Millionaires said they are likely to start or increase usage of banks within the next 12 months, a drop of seven percentage points from 2009. They are also slightly less likely to start or increase usgae of independent investment advisors (13 percent, down from 15 percent two years ago).

Across the age groups, Millionaires under the age of 55 are more likely to start or increase usage of discount/online brokerage firms (28 percent), mutual fund companies (25 percent), independent financial planners (23 percent), and independent investment advisors (17 percent). Seniors over the age of 65 are significantly less likely than their younger counterparts to be starting or increasing usage of these and other companies and institutions, most likely because they are already long-time customers.

The three companies Millionaires said they are likely to start or increase usage of within the next year are Vanguard (25 percent), Fidelity (23 percent), and Charles Schwab (13 percent). TD Ameritrade (20 percent),

The most popular companies among the younger Millionaires are Fidelity (30 percent), Vanguard (27 percent). Baby boomers between the ages of 55 and 64 are the most likely to be calling on Charles Schwab (15 percent).