Investment products are "overly complex," and investors are feeling "overwhelmed" by the slew investment choices available to them, according to the MFS Investing Sentiment Survey.
Specifically, the survey also revealed that 51% of Gen Y investors agree that investment products are overly complex, more than the 40% average for the survey and older age groups (Gen X, 39%; Boomers, 40%). And 35% of investors agree that information they find on the Internet is just as good as what they would get from a financial advisor, with younger generations agreeing more: Gen Y at 57%; Gen X at 47%.
"Investors have a ton of information at their fingertips, but that is not knowledge or perspective,” stated William Finnegan, senior managing director of global retail marketing for MFS. “That is most likely why the need for professional advice is on the rise.”
At the same time, 62% say they would like to be more knowledgeable investors, and 56% feel advisors do a good job explaining their investment options. A further 81% of investors said that they expect their financial advisor to keep them informed about new and innovative investment products.
MFS, through Research Collaborative, an independent research firm, sponsored an online survey from February 8 to 17, 2012, of 974 individual investors with $100,000 or more in household investable assets and 621 licensed financial advisors (either FINRA or SEC) who have been licensed for at least three years with at least $500,000 or more in annual mutual fund sales.