Do financial advisors improve portfolio performance?

Short answer? No.

Do financial advisors aid their clients in making wise investments? This column shows that investors who delegate their portfolio management achieve better results. But thats due to the fact that advisors tend to be matched with richer, older investors. In fact, financial advisors tend to lower returns and raise risk relative to clients who manage their own investment.

More here.

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Niall
Niall
15 years ago

For the term ‘Financial Advisor’ read ‘Motorcycle Ashtray’.

billie
billie
15 years ago

Perhaps older richer investors use financial advisors as they become nervous of having enough funds to last for their life time, or perhaps people use financial advisors as a form of susession planning.
Gives me confidence in my observation that financial advisors are as unregulated and dangerous as the wild wild west