Bringing you live news and features since 2006 

Research reveals major increase in younger people taking financial advice during the Covid-19 crisis


New research from behavioural finance experts Oxford Risk, reveals that 16 per cent of people aged 18-34 with stock market related investments and savings took more professional financial advice during the Coronavirus crisis than they normally would have done, compared to just 6% of investors in general who did this. Only 38 per cent of investors aged 18-34 said they had not taken any professional financial advice during the crisis, compared to 60% of all investors. 

Oxford Risk says its findings reveal that the impact of the Coronavirus on savings and investments – especially during the early stages of the crisis – has meant that many young people who have not seen such market volatility and are less experienced investors turned to financial advisers for help and guidance. 
Oxford Risk builds software to help wealth managers and other financial services companies assist their clients in making the best financial decisions in the face of complexity, uncertainty, and behavioural biases. However, it says that many wealth managers and financial advisers are poorly equipped to help clients deal with the emotional and psychological roller-coaster ride their clients have endured during the Covid-19 crisis, and the impact it has had on markets and their investments.   
Greg B Davies, PhD, Head of Behavioural Finance Oxford Risk, says: “It is encouraging to see from our research that  many investors – especially younger ones – turned to professional advisers to help guide them the market turmoil during the early stages of the Coronavirus crisis. However, unfortunately the systems many wealth managers have in place for supporting clients are too human heavy, inefficient, and front loaded to the beginning of the client relationship. They are poor at adjusting in scale to the changing circumstances during a crisis like the one we are in now. 
“How wealth managers and IFAs understand the financial personality of clients is often limited to poor risk profiling, which is subjective to human assessment. They need to focus more on objective, science-based measures to provide a comprehensive picture of their clients. There is too much guesswork and not enough technology.”  
Marcus Quierin, PhD, CEO, Oxford Risk, says: “Client assessments are focused too much on the views of the financial advisors assessing them and this leads to results being biased, noisy, and inconsistent. To address this, advisers need to be assisted by better diagnostic tools enabling accurate assessment of a client’s personality and likely behavioural tendencies.”  

Latest News

Gargi Chaudhuri, Head of iShares Investment Strategy Americas, has produced the iShares 2024 year ahead outlook, commenting: “We are likely..
J.P. Morgan Asset Management (JPMAM) has launched JPMorgan Global Equity Premium Income UCITS ETF (ticker: JEPG) an actively managed outcome-oriented..
Tradeweb Markets Inc, global operator of electronic marketplaces for rates, credit, equities and money markets, has reported total trading volume..
Cerulli projections indicate that total passive mutual fund and ETF assets will surpass total active mutual fund and ETF assets..

Related Articles

The digital asset fund flows report from CoinShares this week reports that digital asset inflows totalled USD176 million last week,...
Katie Stockton, Fairlead Strategies
Connecticut-based Fairlead Strategies was the first ETF of ETFs winner in the ETF Express US awards, representing a new development...
Australian flag
A new report published by global financial services company Computershare has revealed key trends in the Australian ETF market during...
Eric Balchunas, Bloomberg Intelligence
ETFs will likely see an uptick of trillions in assets to their already strong flows over the next decade as...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by