Here’s some good news for IFAs looking at robo-advisers breathing down their necks: almost three quarters of active investors would trust an IFA to make an investment decision on their behalf.
What’s more, only 12% of active investors would trust a robo-adviser to make an investment decision for them, suggesting ‘manual’ still matters most.
The findings come from the results of a new survey by fixed rate bond provider Minerva Lending.
The survey discovered that just over three quarters (77%) of the 1,000 people polled with £50,000 or more to invest said they trust their own judgement when making investment decisions, while a similar amount (72%) said the same of advice provided by an IFA.
The survey also concluded that robo-advice companies and firms offering software-based investment management tools have yet to win the faith of more experienced, or higher net worth, investors.
When it comes to the advice source when making investments, what ranked highly was personal contact, namely ‘word of mouth’ from family and friends. Three in five (60%) active investors polled said they would make investment decisions on the back of this.
Minerva Lending Director Ross Andrews said: “IFAs should be genuinely encouraged that nearly three quarters of active investors would trust them to make investment decisions on their behalf. For robo-advisers and software-based investment management tools, the survey results are less uplifting. It seems that far more people with bigger sums to invest trust manual decision-making processes, whether by themselves or an IFA.”