About 60 per cent of those with assets of more than $1 million said a high appetite for risk had been a big influence in generating wealth, compared to 36 per cent of those with less than $1 million worth of assets.
The report is a global survey of 790 wealthy individuals published in partnership with the Economist Intelligence Unit that examines how wealthy individuals grow, preserve and pass on their wealth. The study has been developed by Barclays Wealth to understand investor behaviour around the world.
While entrepreneurs are willing to take risks to succeed in business, they are more risk averse with their personal investments. The report shows that individuals with more than $1 million do not take higher risks with investments than those with less money. This suggests that entrepreneurs are more willing to take risks in their own businesses, than with investments.
Wealthy investors are now able to spread risk more widely by adding different types of assets to their portfolios, according to the report.
Interestingly, it reveals a trend amongst wealthy investors of an increasing appetite for financial products that help reduce volatility such as derivatives, private equity and hedge funds, particularly in the Middle East and Asia.
The findings also indicate that wealthy families are encouraging children to gain university education and have their own careers, as they aim to ensure their children strive to achieve their own success.
More than a third (34 per cent) of those questioned think it is a bad idea to leave large sums of money to their children. Interestingly, those who have inherited their own wealth are even less likely to pass on large sums of money to their children than those who have earned their wealth.
About 41 per cent of respondents whose wealth was given agree it is a bad idea to leave large sums of money to children, compared with 33 per cent of respondents whose wealth was earned.
The report also reveals the importance of families agreeing to common goals for passing on wealth. Passing on wealth wrapped up in family business requires good succession planning, according to interviews with
family business experts including Grant Gordon from the Institute of Family Business.
