When, Why, and How Do Mutual Fund Investors Use Financial Advisers?

More than four in 10 U.S. households own mutual funds and half of mutual fund–owning households indicate they have ongoing advisory relationships. Financial advisers provide a wide range of investment and planning services in addition to helping investors select and purchase mutual fund shares. Using a variety of household surveys, this chapter delves into when, why, and how mutual fund investors interact with financial advisers. For example, the research explores whether certain “trigger” events prompt fund investors to seek professional financial advice. Investors typically receive multiple services and choose to work with financial advisers because advisers have expertise in areas investors do not. In addition, investors interact with advisers in a variety of ways (e.g., collaboratively versus the adviser or investor taking the lead; investor conducting their own research). The chapter also analyzes whether certain mutual fund investors are more likely than others to work with financial advisers.