Financial Advice and Household Financial Portfolios

Sarah Brown (), Alessandro Bucciol, Alberto Montagnoli () and Karl Taylor
Additional contact information
Alberto Montagnoli: University of Sheffield

No 14301, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: We investigate the role of financial advice in shaping the composition of household portfolios in Great Britain. Advice is associated with a reallocation of wealth away from real estate and towards bonds and stocks, especially when households seek financial advice "for investments". Having a consultation with a stockbroker has a particularly large effect on the portfolio share in stocks. However, even free financial advice has a positive effect on the shares in bonds and stocks, compared to not receiving advice. Finally, we find a positive association between alternative measures of portfolio risk and the composition of the portfolio, whilst accounting for financial advice.

Keywords: household financial portfolios; financial risk; financial advice (search for similar items in EconPapers)
JEL-codes: D14 D81 G11 (search for similar items in EconPapers)
Pages: 45 pages
Date: 2021-04
New Economics Papers: this item is included in nep-cwa
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Published - published in: Oxford Bulletin of Economics and Statistics, 2025, 87 (2), 382-413.

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Related works:
Journal Article: Financial Advice and Household Financial Portfolios (2025)
Working Paper: Financial Advice and Household Financial Portfolios (2020)
Working Paper: Financial Advice and Household Financial Portfolios (2020)
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