Most investors from affluent households, while unlikely to reduce the number of mutual fund shares they own, either see the recent scandal as a non-isolated incident or have not yet made up their minds, according to a recent study by Phoenix Marketing International.
In polling 6,000 households with either $250,000 in assets or $150,000 in household income, the marketing group's Affluent Marketing Service found that about 30% of respondents think the scandal will grow and about 33% have not yet decided their position.
Although only 17% said they would reduce their mutual fund investments, that percentage represents 3.1 million of the 18 million affluent households. The average affluent household invests $230,000 in the mutual fund market.
"The potential impact of the mutual fund scandals is clearly evident in our data," said David Thompson, vice president of the affluent sector of the Phoenix firm.
"When it comes to their pocketbook, affluent consumers pay close attention to the behavior of their investment companies, and these consumers have high expectations for these companies."