IFAs are the most trusted source of information for retail investors, shows an online survey conducted by CFA Institute.
The survey covered 3,312 retail investors in 10 countries including India, each of whom having investible assets of at least $100 thousand and a total of 502 institutional investors in six countries each of whom are responsible for their institution’s investible assets of at least $10 million.
Out of the ten sources of information for retail investors, 36% said that their personal financial adviser is the most trusted source of information, followed by online research (21%), friends and family (13%), investment newsletters (6%), media (5%), among others. Social media and books were ranked as the least trusted when it comes to getting investment advice.
The survey also measured retail investors’ response to the value of robo advice vis-à-vis brick and mortar advisors. A majority of retail investors in Canada (81%), the US (73%) and the UK (69%) say they will still value the guidance of an investment professional to help them versus having the latest technology and tools. While young investors (aged 25-34 years old) like technology, a majority of them (63%) said that also preferred to have a person to help them navigate and execute their investment strategy.
Interestingly, retail investors in India seem to value latest tech platforms and tools for executing their investment strategies. “A majority of retail investors in India (64%) and China (55%) and half of investors in Singapore believe having access to the latest tech platforms and tools will be most important to executing their investment strategy,” finds the survey.
Besides, the survey also captured the perception of retail investors towards the financial services industry. Investors were asked how much they trust businesses in the financial services industry on a scale of one to nine. Those who assigned a rank of six were defined as ‘trusting’ and a rank of 8-9 as ‘most trusted’. 29% investors in India said that they ‘trust’ the financial services industry while 61% said they ‘trust a great deal’. The level of trust towards financial services industry was low in countries such as UK and Germany.
