Personal accounts: restricted investment choice

clock

Fund choices in the personal accounts regime will to some extent be deliberately restricted because most consumers either do not want or do not understand choices put before them.

That is the conclusion in today’s White Paper on personal accounts. Much of the reasoning is based on consumer research, but also on experiences in countries such as the US and Sweden, where accounts similar to those now proposed for the UK have shown how individuals act in ways contrary to their financial good. For example, evidence on asset allocation suggests many people adopt a naïve strategy. “Some heavily base their decisions on funds’ previous returns, and others concentrate their assets in their own employer’s shares, mistakenly viewing them as safer,” the document states in Chap...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Investment

Advisers turn to smoothed funds to help manage volatility threat

Advisers turn to smoothed funds to help manage volatility threat

Decreasing exposure to equities also a popular strategy

Isabel Baxter
clock 26 March 2024 • 1 min read
Examining the 60/40: Building diversified portfolios in 2023

Examining the 60/40: Building diversified portfolios in 2023

Advisers have a lot to consider when it comes to portfolio diversification

Charlotte Moore
clock 14 April 2023 • 6 min read
Schroder Investment Solutions expands distribution of MPS

Schroder Investment Solutions expands distribution of MPS

Expanding the range of DFM choice on the Parmenion platform

Ayesha Venkataraman
clock 06 December 2022 • 2 min read