New research from AXA Wealth has found that despite an expected growth in self-directed investing, almost half (45%) of advisers** predict that it will actually lead to more people seeking financial advice.
Self-directed investing is forecast to grow in 2013 with over half of investors saying they plan to make some of their more simple financial decisions alone. According to the research, as a result of the RDR, 54% of individuals who currently use a financial adviser said that they would continue to rely on the valued expertise of their adviser for more complex investments, such as pensions, but would invest directly for other transactions.
However, almost a quarter (23%) of investors surveyed still want their adviser to assist them with all investment decisions, with more than two thirds (68%) saying this is because of the valued relationship they have with their financial adviser.
Commenting on the research, Mike Kellard, chief executive officer, AXA Wealth, said: “Self-investing is not new, but with the abolition of commission on investment products, it is perhaps logical that some people may look to avoid paying a fee for financial advice for more simple transactions such as ISAs. Services that help consumers do-it-themselves, may well re-awaken investor’s appetites to invest and provide opportunities for advisers to offer value-added services as their client relationships develop.”
To meet this demand for DIY investment, AXA Wealth has expanded its range of services with the launch of AXA Self Investor; a direct to consumer service, offering a simple, non-advised solution to investors wanting to manage their individual savings and investment plans themselves. The service will support investors in a market where access to advice is expected to be reduced dramatically over the next year.
Promoted through intermediaries, AXA Self Investor aims to enable consumers to make smart, independent investment choices. Built on a ‘making investing easy’ philosophy, it offers a funds-based stocks & shares ISA and Trading Account, with a choice of around 170 ‘open-market’ funds selected from some of the best fund houses in the market, including the Favourites Fund Range, which has been carefully selected by AXA Wealth’s specialist investment house, Architas. With online access 24/7, investing is straightforward and only takes a few minutes.
Kellard concluded: “Built with both consumers and advisers in mind, this new service will not only give DIY investors the confidence to take control, but it will also ensure that together with advisers, we go some way to addressing the advice gap the RDR will no doubt create.”
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