Self-Directed Want Answers, Low Fees

Home

Affluent Investing

Self-Directed Want Answers, Low Fees

Do-it-yourself investors say financial services companies can gain their loyalty by answering questions in a satisfactory manner, charging low fees and offering online access to accounts.

Research by Spectrem Group shows those three actions are important to seven out of 10 affluent investors who make investment decisions without the help of a financial advisor.

Smaller percentages of do-it-yourself investors want telephone calls returned promptly (66%), contact with someone who can help (63%), good investment returns (61%), telephone access at any time of day (51%), newsletters containing general financial information (35%) and regular updates on market performance (33%).

This same group, those who don’t use advisors, differ based on which wealth segment they fall into.

Newsletters and market updates have more appeal to investors who are not yet millionaires. They may not work with an advisor, sometimes due to a (perceived) lack of assets, rather than a conscious decision to be a do-it-yourself investor. For this reason, loyalty is enhanced by receiving newsletters and market updates on performance and trends. In reality, advisors may be looking for entry level investors, with whom they can help grow their investment portfolio and cultivate a lasting relationship. Advisors should know that extra attention now may cause these individuals to someday seek more advice and use an advisor on a regular basis.

Discuss this article on the forums. (0 posts)