Although the wealthiest Americans are able to use alternative investments, they have been increasingly turning to mutual funds, according to a recent study from Spectrem Group. The research revealed that mutual fund usage has doubled from 6% of investable assets in 2003 to 12% in 2005.

"As financial services firms have worked to provide exciting alternative investments for their wealthiest clients, these investors have chosen to put their money into a far more time-tested vehicle: mutual funds," said George H. Walper Jr., president of Spectrem. "Ultra High Net Worth investors are still somewhat gun-shy about accepting greater risk and are managing their market exposure in a conservative way."

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