Nevertheless, the majority of consumers say they are satisfied with their advisors, and aren’t organizing to leave: 43 percent describe themselves as “quite satisfied,” and 42 %, “happy.” Yet another 13 percent are indifferent and say they could be just as satisfied elsewhere. Only 1 percent have been unhappy and preparing to bolt.
While low costs ranked fifth (21 %) on the list reasons for picking an advisor, high charges had been the top-cited reason for walking out the door (14 %), followed by poor client service (ten percent.)
In other words, if the client’s level of trust is high when they choose the advisor, fees are less important.
“It is not until they feel they’ve been treated unfairly that they leave,” Maughan stated.
Investment fees have turn into a larger concern as investors become far more tuned in to how a lot expenditures consume into their earnings. A 2010 Morningstar study showed that lower-cost mutual funds consistently outperform their much more pricey counterparts.
At the exact same time, the developing recognition of lower-cost index funds and exchange-traded funds, coupled with the emergence of online robo-advisors, has pushed charges down across the board. In 2016, the typical expense ratio across all funds was .57 percent, the lowest it is ever been, according to Morningstar research.