The financial crisis has taken its toll on the psyches of the mass affluent. Where once they looked to performance and risk level, now their primary concern when choosing investments is the reputation of the investment provider, according to data from Spectrem Group in its new report, "Mass Affluent Investors 2011, Vol. 1," released Wednesday.
The mass affluent are those with investable assets of $100,000 to $1 million, not including their primary residence.
Tom Wynn, director at Spectrem, said in an interview with AdvisorOne that reputation has become more important among the mass affluent, who, incidentally, are likely in large numbers to rely on themselves for investment choices rather than going to a professional.
"One of the things we’ve seen with the recession, and that we’ve seen among companies, is that reputation has become more important,” Wynn said. “People are looking at the reputations of companies where their investments are made, and that’s becoming more important than, for instance, a company’s past track record."
He added that the phenomenon was "kind of interesting, because companies are always touting their track record and the things that they’ve been doing, but what’s really important to these people is the reputation of companies and the confidence they have in them."
Key Findings From the Survey