RT Journal Article
SR Electronic
T1 Preventing Emotional Investing: An Added Value
of an Investment Advisor
JF The Journal of Wealth Management
FD Institutional Investor Journals
SP 34
OP 43
DO 10.3905/jwm.2011.13.4.034
VO 13
IS 4
A1 Philip Z. Maymin
A1 Gregg S. Fisher
YR 2011
UL https://pm-research.com/content/13/4/34.abstract
AB The authors analyze a unique, comprehensive, multi-decade dataset of all communications with clients by a boutique investment advisory and investment management firm to explore the behavior of individuals involved in financial decision making. They propose and test a theory of self-regulation to explain both the appeal and the value of investment managers to individual investors, and they find that all of the predictions of the theory are borne out by the data. In short, this unique dataset suggests that an important service provided by investment advisors, and apparently desired by individual investors, is the barrier the advisor provides to prevent the individual from aggressively trading and thereby losing money.TOPICS: Wealth management, in wealth management