Control issues still driving DIYers to shun advice



Personal control issues are amongst the reasons some investors do not seek out professional financial advice, according to new research released by the Australian Securities Exchange (ASX).
The ASX 2017 Investor Study conducted with Deloitte Access Economics has also confirmed that the use of advice is highest among those with higher incomes.
“Currently, around 60 per cent of all investors use some form of professional advice (from a financial planner, full-service stockbroker, accountant, or lawyer) to help guide their investment decisions,” the study analysis said. “Financial advice (from a financial planner or full service stockbroker) is more commonly sought by higher income investors, although the differences are modest.”
It said investors had stated the top reasons they used advice were that the advice could be tailored to their personal circumstances, and that an adviser helped them better manage risk in their portfolio.
“For those not using advice, their main reasons are a preference to be in control (‘do-it-yourself’
investors), and that they are not convinced that advice adds value,” the study analysis said. “Of these ‘do-it-yourself’ (DIY) investors, they may not be averse to using financial advice, but it could be that the current form of advice does not suit their preferences.”
The study also found that there was unlikely to be any slackening in the creation of self-managed superannuation funds (SMSFs), with the research revealing 30 per cent of adults who did not currently have an SMSF intended to set one up.
The study also found that three-fifths (60 per cent) of Australian adults directly hold investments of some sort (including investments not available on a financial exchange) outside of their institutional superannuation fund.
It said this meant that many Australian adults were comfortable investing, but they are not necessarily investing in on-exchange investments.
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