Despite recent market turbulence, just 2% of investors sought financial advice in response, according to the Retail Distribution Report by Boring Money.
Instead, most non-advised investors chose to keep an eye on their portfolios. The report found that 58% checked their valuations during the volatility, while 45% went further, scrutinising individual holdings.
Boring Money founder Holly Mackay said: “Market turbulence needs good communication from providers. We saw 10% of our investor panel shift part of their portfolio into cash, and 9% make sales.
“While four times as many bought as sold, it’s clear some acted prematurely — highlighting the need for fast, clear information in uncertain times.”
Rather than turning to traditional sources, investors increasingly looked to platforms like Reddit and YouTube for guidance.
“They wanted something more dynamic than what they were getting from providers,” Mackay explained.
When selecting funds, investors cited risk and cost as their top priorities, followed by information about the fund manager.
“The report highlights the role of platforms in investor communication,” Mackay added. “Most non-advised investors rely on investment platforms for information, particularly fund shortlists. Fund manager websites, by comparison, come a distant second.”
As regulatory changes loom for investment communications, Mackay urged fund groups to rethink not just what they communicate, but how.
“Investors under 35 are nearly five times as likely as over-55s to turn to social media for investment information,” she said.
The report’s findings are based on a 2024 survey of 6,000 self-directed investors and 3,000 fund investors.
These results echo the FCA’s latest Financial Lives survey, published 16 May, which revealed that only 8.6% of people had sought advice on investments, pensions or retirement planning in the past year.
