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Millionaires Invested In Stocks Over Last Year, Says Finance Survey

Millionaires made a larger investment in stocks than any other asset over the

Millionaires made a larger investment in stocks than any other asset over the last year while average investors fled to bonds, according to a finance survey conducted by Boston-based mutual fund giant Fidelity

Millionaires made a larger investment in stocks than any other asset over the last year while average investors fled to bonds, according to a finance survey conducted by Boston-based mutual fund giant Fidelity Investments.

Millionaires investing in stocks

The mutual fund giant stated that during the 12-month period that ended in March, 20 percent of the 1,020 households participating in the survey specified the purchase of individual domestic equities, according to Bloomberg.

The second-most purchased asset was cash, with 13 percent of respondents indicating they added this to their holdings, the media outlet reports. Another 11 percent specified that they added exchange traded funds, and both domestic stock funds and individual U.S. bonds were added by 10 percent of each.

Fidelity, which had a total of $3.5 trillion in assets under administration as of May 31, did not inquire as to what amounts the survey participants had invested, according to the news source. Corporate data provided by the Boston Consulting Group indicates that at least 5.13 million households, or 4.3 percent of the population, have at least $1 million in investable assets.

Risk aversion post-financial crisis

The general investment community has sought refuge from volatility since the S&P plunged 38 percent in 2008.

In the recent year, risk aversion has abated somewhat, the media outlet reports. the S&P 500 has surged 9.2 percent in 2012 through July 18. Data provided by mutual fund research firm Morningstar Inc. indicates that investors withdrew a net total of $130 billion from U.S. equity mutual funds during the 12-month period that ended on March 31. During this period, a total of $191 billion went into bond funds.

Referring to millionaires in an interview, Bob Oros, executive vice president in Fidelity’s institutional wealth services group, stated that "they’re probably ahead of the average investor in how they view opportunities," according to the news source.

He added that "they’re becoming less and less risk-averse."

More results of the finance survey

Oros stated that the view that these market participants have for the future of the economy is the most positive since the mutual fund giant began administering the poll in 2006, the media outlet reports. While the portion of participants in the most recent version of the finance survey indicated that they would be willing to contribute 12 or their portfolio for the purpose of risky investments, only 8.2 percent stated their willingness to do that three years ago in the aftermath of the financial crisis.