Funds investors more likely to use planners

Sixty per cent of proactive investors who put their money into managed funds seek out the services of a financial planner, theChallenger/ASSIRTProactive Investors Survey has found.

The survey of more than 2000 adult Australians, which was released today, found that 44 per cent have investments beyond the family home and compulsory superannuation. Thirty-four percent are shareowners, 24 per cent hold cash-based investments, 19 per cent have managed funds and 16 per cent an investment property.

According to Assirt’s figures, 72 per cent of proactive investors seek the advice of an independent expert, such as an accountant or stockbroker before making an investment decision, while four out of 10 specifically seek the advice of a financial planner.

Interestingly, the survey found that the likelihood of using a financial planner increases from 40 to 60 percent if the investor holds managed funds.

The survey also found that wealth creation and management is becoming increasingly important for Australians, with there being an increased awareness in the community of investment options and strategies.

Challenger International executive director John Barry says that the survey results underscored the continuing need for education and advice.

Barry says 38 per cent of proactive investors still know nothing or little about managed funds. However, the majority of those who use managed funds also use a financial planner, proving planners clearly play a valuable role for many Australian investors.

Assirt market research manager Vanessa McMahon says Assirt research shows that households with an annual income of less than $50,000 are just as likely to use a financial planner as those with incomes closer to $150,000. McMahon says income levels shouldn’t be a barrier to investing.

She says there is still a large number of investors who do not understand managed fund products well enough to feel comfortable choosing them as an investment option.

She says it is not surprising that those investors with managed funds are 50 percent more likely to have a financial planner. This shows financial planners are doing a good job educating investors about the full range of their investment options, McMahon adds.