Almost four-fifths of financial advisers believe their role centres on assisting clients manage the “emotional side of investing” during periods of high volatility, according to a report from Natixis Investment Managers.
A survey of 2,775 financial professionals across 16 countries conducted by the asset manager found that assisting clients in managing their emotions during market fluctuations is core to the role.
“When markets get volatile and clients get emotional, the value of professional advice becomes clear,” the report said.
“This is why 78 per cent of financial professionals describe their role as guiding clients through the emotional side of investing, acting as a voice of reason during periods of high volatility, and helping clients make more rational decisions.”
Similarly, 68 per cent of survey participants said their role was about providing ongoing financial education to clients.
“After experiencing the euphoria that comes from watching quarter after quarter for more than nine years, it’s likely that even a brief disruption to that pattern could result in panic for investors who do not have a clear grasp on long-term plans,” the report said.
Additionally, the survey found nearly 80 per cent of global financial professionals felt the ongoing bull market had made investors complacent about risk, while nearly half (45 per cent) said their clients reacted emotionally to market movements.
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