Investors set to bypass advice
According to AXA Wealth, self-directed investing is forecast to grow in 2013 with over half of investors saying they plan to make some of their financial decisions without professional advice.
As a result of the Retail Distribution Review (RDR), where financial advisors are required to charge up-front fees for their advice, 54% of individuals who currently use a financial adviser said that they only rely on the expertise of their adviser for more complex investments, such as pensions but would self-invest for other transactions.
Mike Kellard, chief executive officer at AXA Wealth, said: “Self-investing is not new, but with the abolition of commission on investment products, it is perhaps logical that some people may look to avoid paying a fee for financial advice for more simple transactions such as ISAs.
According to AXA, self-investing is a growing trend, highlighting investors’ increasing desire to take a more active interest in financial decision making.
13% of those surveyed said that they would go it alone for all investments while 49% said they can make their own financial decisions.
A third said they would benefit from the ability to see their investments whenever they want, while 29% are attracted by the chance to learn more about investing.
Kellerd continued: “Services that help consumers do-it-themselves may well re-awaken investor’s appetites to invest and provide opportunities for advisers to offer value-added services as their client relationships develop.”
Despite this statistics on investors wanting to go it alone, 45% of financial advisors are predicting that more people will seek out financial advice once RDR is introduced.
The relationship that some investors have formed with their investors is also highly valued, as 68% of those investors surveyed said they will seek out their advisor to assist them.