Investment Company Institute
Stock market risk tolerance holding steadyPosted by RJ and Makay on Oct 17, 2011 |
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Since the 2008 financial crisis, investors have remained cautious, though their risk tolerance has actually held steady, according to the Investment Company Institute’s (ICI) 2011 Annual Mutual Fund Shareholder Tracking Survey. In May 2008, 36% of fund-owning households said that they were wiling to take substantial or above-average risk. That level of risk tolerance has held at 29% for the three years since the crisis.
Exchange traded funds (ETFs) are attracting wealthier, younger and more engaged investors than their mutual fund counterparts, according to a new joint study by Cerulli Associates and the Investment Company Institute (ICI). Advisors, for the most part, are not using a lot of ETFs, but investors who utilize them tend to represent the ideal advisor client.
Don't expect a fiduciary standard for broker-dealers (B-Ds) before late July of this year, more than a year after passage of the Dodd-Frank financial reform law requiring such a standard.
