Where will the world’s millionaires invest in 2016?

Concerns about the global economy have dampened enthusiasm among millionaire investors for foreign investments, but interest in Australia still remains.

A recent Spectrem Group wealth level study found six-in-10 respondents with a high net worth between $1 million and $4.9 million, indicated that they have no interest in investing outside the US.

However, of the 39 per cent of investors which indicated that they would be interested in offshore investments, eight per cent listed Australia as the most attractive – joint-fifth with Brazil, Japan and India.

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For respondents under the age of 35, Australia came out as the third most interesting investment, behind China and Japan, with 14 per cent of millionaires.

The highest percentage of millionaires (19 per cent) pointed to Europe as the most likely region to invest, followed by China (15 per cent), Canada (12 per cent) and the UK (9 per cent).

Diversification and growth potential in emerging markets is the primary reason these millionaires are drawn to these areas.

Roughly three-fourths of non-Millionaires with a net worth of at least $100,000 expressed no interest in investing outside of the US, compared with less than half (44 percent) of Ultra High Net Worth households with a net worth of at least $5 million.

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Overall interest in investing in Europe has grown seven percentage points in the past three years, according to Spectrem Group research.

Meanwhile, intention to invest in China and Brazil has dropped six percentage points and two percentage points, respectively.

Across age groups, Millennial Millionaire respondents under the age of 35 express the most interest in investing in Australia, Japan (18 percent) and China (28 percent). The highest percentage of those looking to invest in Brazil (18 percent) and Europe (27 percent) are Gen Xers ages 36-44.