Most Investors Without Advisors Are Clueless About Fixed Income: Survey
December 18, 2019 by Michael S. Fischer
Investors who work with a financial advisor are much likelier to have a sophisticated understanding of fixed income investing than those who do not enlist professional guidance, BNY Mellon Investment Management reported Monday.
A survey of American investors’ knowledge, attitudes and behaviors about fixed income assets revealed, however, that misconceptions exist around fixed income investing, regardless of whether participants benefited from financial advice.
Sixty-four percent of respondents who said they worked with an advisor reported that they had a lot or at least some understanding of fixed income securities, compared with 35% of those who did not have an advisor.
Greater knowledge about fixed income asset classes appeared to correlate with increased portfolio allocation, according to the survey results.
Nearly two-thirds of investors who received financial advice said they had some allocation toward fixed income products, compared with just a quarter of those who said they had no experience working with an advisor.
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