Less than a quarter of British investors have a financial adviser, research has revealed.
Boring Money’s online investing report found 32 per cent of UK adults hold an investment product, a 2.1 per cent increase from January 2023.
According to Boring Money the rise in the number of total investors has been driven by the increase in younger men (aged 25-44) investing.
The report also showed a third of British investors have less than five years’ experience of stock markets.
These young account holders have accounted for the growth in market share of robo advisers who now have 22 per cent of all DIY investors, the report revealed.
It also found 42 per cent of investors said they have never used a financial adviser, while 34 per cent said they have done in the past.
Among advised investors satisfaction with performance increased from 2023 but it is still not back to 2022 levels.
Chief executive of Boring Money, Holly Mackay said: “Just one-quarter of Brits who have investment products currently get financial advice. With the ripple effect of consumer duty and a scrutiny on service levels and ongoing servicing underway, it is unlikely that this number will grow with today’s servicing models.
“This makes the current advice/guidance boundary review more critical than ever, as the advice gap looks set to grow.”
Reported balances held by advised investors increased over the past 12 months, according to Boring Money.
The average advised customer reported their assets increased by 15 per cent from 2023 to £245,573, while the average DIY investor reported their total invested assets at £84,359.
The report also revealed many advised customers continue to hold a DIY investment account as well as account proliferation in 2024.
Some 22 per cent of those using a DIY investment platform also have a financial adviser and according to Boring Money these customers are most likely to use Aviva and Fidelity for their DIY accounts.
This comes after research from Hargreaves Lansdown last year (August 2023) found a fifth of young investors get their stock tips and market forecasts from Instagram.
Figures from an Opinium Survey of 2,000 people carried out for Hargreaves Lansdown in May 2023 found other social media sites were also popular with young investors - defined as aged from 18 to 34 - with 16 per cent turning to Facebook, 14 per cent sourcing ideas from Reddit and 8 per cent looking on TikTok.
alina.khan@ft.com
