What is the Single Most Important Factor Investors Look for When Hiring a Financial Advisor?
By Hal M. Bundrick
NEW YORK (MainStreet) -- What do investors look for when hiring a financial advisor? Superior investment performance? No. Low fees? Apparently not.
According to new research, most investors are searching for an advisor who will put their interests first. In the industry, that's known as a fiduciary standard. And 38% of investors say that trusting an investment manager to act in their best interest is the single most important factor in making a hiring decision, according to the just-released CFA Institute/Edelman Investor Trust Study. Achieving high investment returns was cited only half as often (17%), and fee amounts/structure only a fifth as much (7%).
Investors also say that transparent and open business practices, responsible actions to address an issue or crisis and ethical business practices are more important to building trust than performance-related attributes such as delivering consistent financial returns and offering high quality products or services.
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