50 Percent of All U.S. Households Hold Stocks and Mutual Funds
May 03,2007 00:00 by admin
Ownership in America, 2002,” was released in September 2002 by the
Investment Company Institute (ICI) and the Securities Industry
Association (SIA).1 The survey indicated that there were an estimated
52.7 million households (49.5 percent), or 84.3 million investors, who
owned stocks or equity mutual funds as of January 2002. That compares
with 36.6 percent of households in 1992, and 41 percent in 1995.
The survey included interviews with 4009 individuals in January and
February 2002. The following are some of its key findings:
♦ 96 percent of equity investors are long-term investors, and
86 percent follow the buy-and-hold strategy.
♦ 31 percent of equity investors bought stocks during 2001,
while 24 percent sold stocks.
♦ 36 percent of those with household income of less than
$50,000 are willing to take above-average or substantial risk,
for a similar gain, compared to 37 percent with income of
$50,000 to $99,999, and 43 percent with higher incomes.
♦ 58 percent base their stock buy and sell decisions on advice
from professional advisors.
♦ 48 percent of households holding equities do so through a
retirement plan, while 44 percent originally bought equities
that are not part of any retirement plan.
♦ 28.7 million households own stock mutual funds that are not
part of any retirement plan.
♦ 89 percent of investors own stock mutual funds, while 49
percent own individual stocks, and 52 percent only hold
mutual funds, while 11 percent only hold individual stock,
and 38 percent hold both mutual funds and stocks.
♦ 44 percent of equity owners first bought their stocks prior to
1990, while 26 percent purchased them from 1990 through
1995.
♦ 65 percent indicated that saving for retirement was their
most important financial goal, and 87 percent indicated that
they were investing in stocks for their retirement. ♦ 57 percent of the investment decision making is done by codecision
makers, mostly married couples.
♦ 31 percent of investors use the Internet to buy and sell securities,
and 46 percent use the Internet to check stock prices,
while 38 percent read online publications.
For additional information about this survey, contact the ICI
at www.ici.org, at (202) 326-5800, or contact the SIA at www.sia.com,
(202) 296-9410