Study Finds Blurring Line Between DIY Investors and Financial Advisors

A study by Crisil Coalition Greenwich found that the traditional division between do-it-yourself investors and clients of financial advisors is becoming less distinct. Among consumers with between $100,000 and $5 million in investable assets, 54% maintained self-directed accounts with Fidelity Investments, Vanguard, Charles Schwab, E-Trade from Morgan Stanley, Merrill Edge, or Robinhood. Researchers also found that nearly one-quarter of consumers with between $2 million and $5 million were 'hybrid' investors, utilizing both methods.

The trend suggests that many affluent households are combining self-directed investing with professional advice. This shift challenges the traditional revenue models of wealth management firms and increases demand for low-cost, self-directed brokerage services.