High-Net-Worth Individuals in Mexico Favor Fixed Income; Call for Greater Financial Education and Diversification
High-net-worth investors in Mexico tend to maintain more conservative strategies than their peers in other markets, with a strong preference for fixed income and real estate, according to findings from Invested’s Wealth Pulse 2025 report. The study, based on surveys of individuals with more than one million dollars in investable assets, suggests that a gap in financial education and limited exposure to equity markets have slowed the growth of their wealth relative to international standards.
In 2022 and 2023, strong returns from government instruments—such as Cetes and bonds—supported this defensive stance. However, the monetary policy cycle shifted in 2024, when the Bank of Mexico began gradually lowering its benchmark rate. Although rates remain restrictive by historical standards, short-term yields have started to moderate, increasing reinvestment risk and sparking debate about the need for greater diversification.
Internationally, wealth portfolios are usually more balanced between equities, fixed income, and alternative assets (like private equity, institutional real estate, or hedge funds). In Mexico, by contrast, traditional debt and real estate still dominate. This bias is partly due to a preference for tangible assets and a perception of lower volatility, but is also a reflection of structural features in the local market, such as the limited depth of the stock market, low stock turnover, and a shortage of new listings.
The Mexican stock exchange represents less than 1% of global equity market value, while the United States accounts for over a third. This relative size limits both sector exposure and domestic liquidity, factors which typically discourage high-net-worth investors from allocating to local equities. The alternative—investing in global markets—introduces currency risks and international custody considerations that require specialized guidance.
The strengthening of the peso in recent years has also influenced portfolio decisions: for some investors, currency appreciation has delayed risk hedging or the purchase of dollar-denominated assets; for others, it’s been an opportunity to internationalize holdings at more favorable relative prices. In any case, effective management of currency risk, geographic diversification, and the selection of efficient investment vehicles remain key components of long-term wealth management.
The Invested report highlights another gap: nearly eight out of ten respondents lack a formal succession plan. The absence of structures like family trusts, family protocols, and wills with clear directives can jeopardize business continuity and tax efficiency across generations. For financial institutions, this gap represents an opportunity to strengthen comprehensive advisory services that integrate investment, tax planning, and corporate governance.
The sector is responding with a growing array of services. Private banks and wealth managers—including the recent relaunch of Scotiabank’s private banking division—are seeking to shift portfolios toward more diversified frameworks that include fixed income, equities, and some alternatives, tailored to each client’s profile and risk tolerance. At the same time, digital platforms and independent advisors have promoted the use of ETFs and low-cost global solutions, although access to alternatives remains concentrated among qualified investors with a long-term horizon due to regulatory and liquidity requirements.
The macroeconomic context presents both challenges and opportunities. Inflation has been trending downward from recent highs but remains above the central bank’s target, suggesting monetary policy will remain cautious. Rate normalization may benefit the valuation of longer-duration bonds but will reduce short-term yields. Meanwhile, expectations of increased investment from supply chain nearshoring are boosting segments such as industrial parks, logistics, and energy—areas in which high-net-worth investors have participated through Fibras, CKDs, and private vehicles, facing sector concentration and liquidity risks.
For high-net-worth individuals, the immediate agenda involves three fronts: enhancing financial education to fully understand the risk–return equation beyond fixed income; professionalizing wealth and succession planning; and incorporating diversification across assets, geographies, and currencies, with disciplined rebalancing and attention to costs and taxation. A combination of specialized advisory and open-architecture platforms can help close the gap with international standards.
In summary, the declining rate environment, limited depth of the local stock market, and lack of succession planning call for a shift toward more balanced portfolios and comprehensive advisory. Diversification, currency risk management, and professionalized wealth management will be crucial for sustaining wealth growth over the medium term.
