How the rich invest

Have you ever wondered how the rich invest? Cautiously is the answer.

Investment Trends recently conducted research on this question for the financial advisory group, LGT Wealth Management’s 2025 State of Wealth Report. Australia’s so-called high-net-worth (HNW) population (defined as those with more than $1 million in investable assets (excluding the family home)) grew 10% to 760,000 people in the year to June 2025.

Along with their greater numbers, the rich are also getting richer. Surging asset prices lifted total investable assets by 18% to a record $4 trillion. This translates to an average wealth of $5.6 million per investor, and $18.9 million for ultra-high-net-worth individuals with more than $10 million to invest. So there’s a lot at stake.

Investment Trends surveyed almost 1,200 HNW Australians, including 168 of the ultra-wealthy.

The results are instructive, even if you’re not in the millionaires’ club.

Diversification, caution and patience

It’s often assumed that wealthy people became so because they are good at investing and willing to take risks in pursuit of high returns. But the reality is more nuanced, especially where the psychology of investor behaviour is concerned. More on that later.