Most investors do not want a professional to help them. They
are afraid they will be sold to and are happy avoiding that awkward situation.
They are comfortable managing their accounts online and are just as happy to
avoid a salesman when managing their investment affairs. There is an inherent
skepticism toward the industry, its institutions and the representatives of the
industry.
Parts of the investment advising function are getting
commoditized by technology, including risk assessment, asset allocation,
account aggregation, rebalancing, tax optimization and reporting. Parts of the
investment management function are also getting commoditized by technology
including, security selection, portfolio construction, evaluation, performance
measurement, and portfolio attribution.
The key to success in investment advisory is creating a
great customer experience. This requires not only problem solving skills and
the development of financial solutions, but education skills, communication
skills, and listening and empathy skills.
***inspired by an article in CFA Institute Magazine
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