Wealthy investors who can afford to invest in hedge funds, private equity and venture capital have turned to mutual funds instead. According to a recent Spectrem Group study, in the last two years investors worth more that $5 million have doubled their mutual fund exposure by increasing these holdings to 12% of their investable assets.

"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," George H. Walper, president of Spectrem Group, told Dow Jones.

The move into mutual funds can be attributed to the fact that well-off investors have been making more cash deposits, Spectrem reports. Cash deposits have grown to 13%.

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