Financial Advice and Household Financial Portfolios

Sarah Brown (), Alessandro Bucciol, Alberto Montagnoli () and Karl Taylor
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Alberto Montagnoli: Department of Economics, University of Sheffield, UK

No 2020009, Working Papers from The University of Sheffield, Department of Economics

Abstract: We investigate the role of financial advice in shaping the composition of UK household portfolios. 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: Financial Advice; Financial Risk; Household Financial Portfolios (search for similar items in EconPapers)
JEL-codes: D14 D81 G11 (search for similar items in EconPapers)
Pages: 42 pages
Date: 2020-11
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Citations: View citations in EconPapers (1)

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https://www.sheffield.ac.uk/economics/research/serps First version, November 2020 (application/pdf)

Related works:
Journal Article: Financial Advice and Household Financial Portfolios (2025)
Working Paper: Financial Advice and Household Financial Portfolios (2021)
Working Paper: Financial Advice and Household Financial Portfolios (2020)
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Persistent link: https://EconPapers.repec.org/RePEc:shf:wpaper:2020009

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