Direct investors want advice
Direct investors would be more likely to seek advice if financial advisers' value proposition was clearer, research has found.
CoreData's 2012 Direct Investors Report found 64.7 per cent of direct investors would be more interested in seeking advice if an adviser's value-add was clear.
Almost sixty per cent of direct investors would seek scaled advice and 63.4 per cent said they would consider expanding scaled advice to wholistic advice if they were satisfied with the service provided.
"There are some key barriers that advisers need to overcome, however, including low trust and a lack of understanding in the value of advice," CoreData's head of advice, wealth and super Kristen Turnbull said.
Amongst those interested in scaled advice, 61.3 per cent said they were interested in one-off advice, compared to 38.7 per cent who preferred piece by piece advice.
Financial planners were the preferred channels for advice for 52.8 per cent of respondents, while 23.5 per cent preferred to receive scaled advice from their super fund. The remainder were unsure of their preferred channel.
Turnbull said the number of direct investors had grown over recent years, driven by market mentality, a want for flexibility and control and social networking. Respondents' most important financial goal was security and independence.
But investors' reasons for not seeking advice differed - some were not convinced of the value advisers added and some thought their financial situation did not warrant a need for advice.
CoreData found the media was the main information source for direct investors, with 46.5 per cent relying on general newspapers and magazines and 41.3 per cent dependent on niche finance publications. Personal networks served as a source of information for 39.1 per cent, while 32.4 per cent relied on their gut feeling.
Recommended for you
Rather than taking a controlling approach, the latest generation of overseas private equity deals is helping advice firms to achieve their growth ambitions, three commentators have said.
Private wealth firm Fitzpatricks Group has appointed a newly created head of product, who previously spent 20 years at CFS, to bolster its range of investment options.
The Financial Services and Credit Panel has made a written direction after advice regarding non-concessional contributions meant an individual was forced to withdraw over $330,000 from their super.
Merchant Wealth’s David Haintz has described how the firm differs from the traditional private equity ventures jumping into Australia, and why M&A isn’t like Married at First Sight.
