The average investor believes they would need to have a minimum of £67,625 to invest before they would seek financial advice, new research from technology provider Nucoro has revealed.
For over a quarter (28%) of investors, this sum rises to in excess of £100,000.
However, just 28% of those surveyed said a financial adviser would provide the best returns on their money, according to Nucoro, while 27% thought they could achieve the best returns if they managed the money themselves. Nearly one in six (14%) would access some form of adviser through their bank or work and 8% believed robo-advice would deliver the best returns.
When asked what they would expect to pay in fees on a £50,000 investment, the majority (68%) responded less than £500. One in five (20%) said between £500 and £999 and just 12% said they would expect to pay over £1,000.
The research also revealed that 6% of those surveyed had been turned away by a financial adviser because they did not have a sufficient pot to invest.
Nikolai Hack, chief operating officer, Nucoro, said of the findings: “Our research shows strong demand for financial advice, however, the growing regulatory and compliance costs means that some advisers are having to insist on larger minimum levels of investments from investors before agreeing to take them on as clients.
“By outsourcing much of their technological and digital requirements to a specialist third party, wealth managers can not only reduce their costs but also improve their levels of efficiency and service, enabling them to take on more clients.”