Three-quarters of investors in a new survey by Fidelity Investments expressed confidence that professional management would help them meet their financial goals.
The survey found that the benefits of professional money management accrued even to those without a complicated portfolio; only 10% of respondents described their financial needs as very complex.
The findings were based on an online survey conducted by ORC International in late October among a sample of 400 respondents ages 25 and older who had $5,000 or more in a managed account.
Eighty-nine percent of investors surveyed said that a managed account simplified their investing, and cited these main benefits:
Having confidence my portfolio is properly diversified: 48%
Being able to talk to a financial professional about my investments: 40%
Having confidence that I’m on track to meet my investing goals: 36%
“Working with a professional money manager can benefit even the most seasoned investors by taking the emotion out of their financial decisions,” Fidelity’s head of managed accounts Rich Compson said in a statement.
“We hear time and again from investors — particularly nervous ones — that a managed account has helped them stay properly allocated during stressful times when they otherwise would have overreacted, like in volatile markets.”
Leaving DIY Behind
Investors in the survey had various reasons for moving from do-it-yourself investing to a professionally managed account. Thirty-one percent cited their lack of skill, desire or lack of time to manage their own investments.
Twenty-three percent said they wanted a professional to tell them what to do, and 22% said they were prompted to seek professional management by a life event.
Respondents of all ages said a family member or friend, a financial advisor or their company’s retirement plan introduced them to a managed account.
Survey participants started investing on average around age 30, often triggered by a pivotal life event. Twenty-five percent said they did so upon marrying, 18% because of a change in job status and 17% following the birth of a child.
Seventy-two percent of baby boomers in the study said they had invested in a managed account for more than 20 years.