Investors are turning to platforms over fund managers in turbulent economic times, a report from Boring Money found.
The research and data business found that recent market volatility did not prompt investors to seek financial advice.
Just two per cent reported turning to an adviser, despite 10 per cent making a decision to move some of their portfolio into cash and 9 per cent making some sales.
Boring Money founder Holly Mackay, said: “Although four times as many investors bought as sold, we can still assume that some people sold prematurely, emphasising the need for quick, clear communication and information to support at such unsettling times.”
For fund investors, the majority turned to their investment platforms for information when markets were volatile.
Mackay said fund manager websites were not as popular with investors when they want to find out information.
“The importance of platforms in communication is highlighted in the report,” said Mackay.
“The major source of investment information for non-advised investors remains the information provided by investment platforms, closely followed by the fund shortlists on the platforms.
“Fund manager websites play second fiddle to the platforms when it comes to investor communication.
“As fund managers consider the regulatory changes coming our way on investment communications, they also need to consider the how, not just the what.”
The study showed 58 per cent of non-advised investors checked their portfolio valuation during recent market turmoil while 45 per cent checked the performance of individual holdings.
Boring Money also found investors were turning to online media sources, including Reddit and YouTube, because they wanted something “more dynamic” than what was coming from providers.
It found that investors under 35 were almost five times more likely to look to social media for information on their investments than those over 55.
The study surveyed 6,000 self-directed investors, 3,000 fund investors and around 530 self directed investors on Boring Money’s research panel.
tara.o’connor@ft.com
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