Some investors who work with advisors have always favoured taking a portion of their portfolios into their own hands as they like to participate in the latest investment trends or simply have an interest in trading. For others, the pandemic may have been the catalyst to give self-directed investing a try.
In the U.S., affluent investors who consider themselves reliant on advisors rose to 42 percent last year from 37 percent in 2015, according to a recent Cerulli Associates Inc. report. However, these clients also increased their ownerships of self-managed accounts in the same period almost doubling to 69 percent to 45 percent. In fact, these accounts make up 33 percent of their total investment assets.
Elke Rubach, principal of Rubach Wealth Holistic Family Advisors in Toronto, says that clients who express interest in managing part of their portfolios mean they’re eager and invested in the process. But to be successful, clients should have some technical skills or at least be willing to learn.
Ms.Rubach tells clients to start small, look at how their prospective investment will complement their current portfolios and whether they’re overdiversifying or doubling up on existing holdings.