Financial advisors see anxiety adversely impacting clients’ financial planning and investment decisions, according to survey results released today by Hartford Funds. From missing investment opportunities to prioritizing low risk over the potential for higher returns, Americans’ uncertainty and anxiety are driving their financial decisions. Roughly 130 advisors were surveyed regarding client investment behaviors against the backdrop of today’s economic environment.
“While it’s no surprise that consumers are anxious about the economy, advisors are facing the challenge of not only managing clients’ investments, but also managing the emotions and fears that influence their decisions,” said John Diehl, Senior Vice President at Hartford Funds. “While there are a number of factors to consider, the survey findings underscore the need for both advisors and clients to recognize and evolve certain behaviors in order to effectively pursue their financial goals.”
Key findings from the survey include:
- Anxiety is adversely impacting client investment decisions:
Most advisors (57 percent) believe clients have allowed their anxiety to adversely impact their investment decisions. This behavior is one of the top two concerns shared by advisors today. Market volatility was the most-cited issue that is keeping advisors up at night, followed closely by client anxiety about saving and investing.
- Consumers place higher value on investment certainty than returns:
- Advisors are seeking alternatives to fixed income amid rising interest rates:
- Equity Value Funds and corporate bond products provide greater clarity for clients:
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