How to do better with stocks

Frankfurt Many wealthy investors are still over-relying on bonds and other interest rate products. As a result, they miss opportunities in the financial markets. This is the result of an evaluation that the Handelsblatt Research Institute created together with the family office Finvia.

The investment behavior of wealthy German investors was analyzed, the total assets amounted to at least 500,000 euros. This shows that Germans are less inclined to invest their assets in riskier but higher-yield asset classes.

Below, we list the six most common mistakes wealthy clients make — and how to address them.

Mistake 1: Too many bonds in the portfolio

In Germany, around 75 percent of investors still hold fixed-income securities. Reinhard Panse, Chief Investment Officer at Finvia, considers this pension-orientation of the depots to be fatal: “Of course this is insane, because the bonds are no longer viable in the context of the zero interest rate policy of the central banks.”