Majority of DIY investors unsatisfied
A majority of do-it-yourself (DIY) investors were relatively unhappy with their main DIY investment broker, with only three in four rating their broker as ‘good/very good’, a relatively low satisfaction score among investment products.
The Wealth Focus DIY Investor Report found that of the top DIY investment brokers, in terms of client satisfaction, the following were rated ‘good/very good’: InvestSmart (93 per cent of respondents); CommSec Direct Funds (76 per cent); Direct Access (61 per cent); and E*TRADE (54 per cent).
Wealth Focus managing director Sulieman Ravell said the recent takeovers of Neville Ward Direct, InvestSmart and Sanford meant investors looking for an alternative were limited in finding another investment provider, which is reflected in the relatively low industry satisfaction levels.
“Fairfax’s purchase of InvestSmart was very astute; their own client satisfaction indicated that they were floundering in their offering and very much in danger of losing market share. InvestSmart gives them a new lifeline to protect their market share,” he said.
The research also found that DIY investors were least satisfied in the areas of tax reporting, investment strategies offered and investment newsletters, with 71 per cent indicating they would change brokers if they offered a better service.
“Reflecting the lack of input from financial planners, the report highlighted a shortfall in the information and service they received from their DIY investment broker.”
According to Ravell, in an attempt to fill this need in the market Wealth Focus has launched its Discount DIY Investment Service. Wealth Focus aims to provide an alternative for disgruntled investors looking for personalised service not currently offered by the limited number of DIY investment brokers.
“The investment brokers in the market are competing on price, but have become complacent in how they look after their clients. Many of the investment newsletters produced have become an advertising media, regurgitating the same products and wording over and over again. Our aim is to provide insightful investment views and strategies that add value to those making their own investment decisions,” Ravell said.
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