TUWHERA Open Research
AUT University
View Item 
  •   Open Research
  • Faculties
  • Faculty of Business, Economics and Law
  • AUT Business School
  • View Item
  •   Open Research
  • Faculties
  • Faculty of Business, Economics and Law
  • AUT Business School
  • View Item
JavaScript is disabled for your browser. Some features of this site may not work without it.

Financial advice and asset allocation

Zhang, A
Thumbnail
View/Open
Zhang_FinancialAdvice_130421.pdf (529.0Kb)
Permanent link
http://hdl.handle.net/10292/6786
Metadata
Show full metadata
Abstract
We explore differences in portfolio composition between investors who receive financial advice and those who do not. Using proprietary data from a national investment savings scheme that contains information of 405,107 individual retirement accounts, we find that financial advice is transformative. People who receive advice hold their assets differently compared to people who do not. We report five key findings. (1) Older, wealthier and female investors are more likely to receive financial advice. (2) Advised investors hold more equity assets. (3) Demographic characteristics affect asset allocation. (4) Advisers tend to recommend asset allocations in line with life-cycle based theories. (5) Investors who received advice tend to earn higher returns in years when equity markets perform well.
Keywords
Financial advice; Portfolio choice; Household finance
Date
February 7, 2013
Source
New Zealand Finance Colloquium held at University of Otago, Dunedin, New Zealand, 2013-02-07 to 2013-02-08, published in: Financial Advice and Asset Allocation
Item Type
Conference Contribution
Publisher
The New Zealand Finance Colloquium
Publisher's Version
http://www.nzfc.ac.nz/archives/2013/symposium/
Rights Statement
NOTICE: this is the author’s version of a work that was accepted for publication. Changes resulting from the publishing process, such as peer review, editing, corrections, structural formatting, and other quality control mechanisms may not be reflected in this document. Changes may have been made to this work since it was submitted for publication. A definitive version was subsequently published in (see Citation). The original publication is available at (see Publisher's Version).

Contact Us
  • Admin

Hosted by Tuwhera, an initiative of the Auckland University of Technology Library

 

 

Browse

Open ResearchTitlesAuthorsDateAUT Business SchoolTitlesAuthorsDate

Alternative metrics

 

Statistics

For this itemFor all Open Research

Share

 
Follow @AUT_SC

Contact Us
  • Admin

Hosted by Tuwhera, an initiative of the Auckland University of Technology Library