Mutual fund ownership nearly triples to Asia-high of 31%

About 72% of onshore affluent assets remain held in cash and liquid deposits.

Mutual fund ownership amongst Singapore high-net-worth (HNW) investors nearly tripled to 31% in 2026, the highest adoption level in Asia, according to a white paper by Citi Wealth and research firm RFI Global.

The figure, up from 11% in 2022, outpaced those of India (24%), South Korea (17%), Hong Kong (16%), and mainland China (7%).

Citi Wealth said Singapore’s wealthy are turning to professional fund management to remove emotion from investment decisions and tap the expertise of professional money managers.

However, a large proportion of portfolios remain held in cash.

About 72% of onshore affluent assets and 74% of offshore booked assets remain concentrated in cash and liquid deposits. Only 26% to 28% were allocated to investments.

The firm said the high level of cash holdings reflects investors’ continued preference for liquidity and capital preservation.

Singapore’s domestic and cross-border wealth pool has expanded steadily over the past year, with average assets for HNW clients hitting $1.92m (US$1.5m), up 6% from $1.8m (US$1.41m) in 2025.

Average assets under management for affluent clients grew 5% to more than $721,000 (US$565,000) per financial institution, up from about $686,000 (US$537,710).

Regional inflows continue to be led by Indonesia, which accounts for 41% of cross-border banking customers, followed by Malaysia at 36%.

The report also found that 58% of HNW clients and 51% of affluent clients are comfortable exploring artificial intelligence (AI) for personalised insights, but human control remains non-negotiable.

Remaining in full control of financial decisions (31%) was the top consideration for AI adoption, followed by the option to consult a human adviser (22%).

"The future of wealth management will be defined by how effectively technology and human advice work together,” said Yeo Wenxian, Asia South head of wealth at Citi and CEO of Citibank Singapore.

“While clients are increasingly open to using AI to explore ideas and evaluate options, trust remains central to the decision-making process,” he added.

Meanwhile, Singapore outpaces regional peers across all age cohorts in terms of intergenerational wealth preparedness, according to the report.

About 76% of Singaporeans aged 55 and over have established wills or succession plans, compared with 41% in Hong Kong.

Advice from a financial adviser and health concerns (both 41%) are the two top triggers for initiating succession planning in Singapore, followed by retirement planning (37%), marriage or divorce (18%), and the birth of a child (13%).

When structuring estates, protecting family assets (51%) is the top priority, taking precedence over avoiding family disputes (45%) and ensuring fair distribution amongst heirs (45%).