According to a survey of wealth managers in the UK, France, Italy, Spain and Ireland responsible for €328bn in assets, around seven in ten (68%) admit they are surprised by the decisions their clients make.
This is despite the research also showing that 80% of wealth managers surveyed claim they have a very good understanding of their clients’ psychological profiles when it comes to investments.
Nearly two-thirds (62%) of respondents believe emotional decision-making costs the average investor over 100 basis points of investable wealth each year.
Meanwhile, 82% of wealth managers stated they have good tools and systems in place to understand their clients’ psychological profiles, compared to 4% who do not.
Those who said they have sufficient training to understand their clients’ psychological profiles amount to 74% of respondents. However, when asked how they assess their clients’ psychological profiles, 67% rely mainly on their own intuition.
GrowthInvest is a trading name of EIS Platforms Limited. EIS Platforms Limited (FRN: 694945) is an appointed representative of Sapphire Capital Partners LLP (FRN:565716) which is authorised and regulated by the Financial Conduct Authority in the UK.
All rights reserved 2023 @ growthinvest