Investor Confusion on Fees Remains High, New DALBAR Study Reveals
14 Agosto 2024 - 11:08AM
Business Wire
The investment industry's push for fee transparency may not be
as effective as hoped, according to a new study by DALBAR, a
leading financial services market research firm. The 2024 Investor
Insights: Fees & Charges report uncovers a persistent gap in
investor knowledge, with many individuals still struggling to
understand the fees associated with their investments.
Key Findings:
- Confidence Gap: While 52% of investors feel confident
about understanding fees, nearly half remain unsure or completely
unaware.
- Income Disparity: The study found a correlation between
income and fee understanding, with higher-income individuals
demonstrating greater confidence. Alarmingly, 2% of respondents
with under $100K in annual household income were unaware of any
fees associated with their investments.
- Fee Importance: 74% of investors consider fees extremely
or very important when making investment decisions. However, only
66% have chosen a different investment due to lower fees.
- Long-Term Impact: 68% of investors believe fees can
significantly impact the long-term performance of their
investments.
"The findings highlight a critical need for improved
communication and education around investment fees," said Jared
Licklider, Senior Research Manager at DALBAR. "Financial firms must
prioritize clear and concise fee disclosures, and investors should
proactively seek to understand the costs associated with their
investments."
The report also reveals that investors primarily turn to the
Internet and their account statements for fee information. However,
many find this information difficult to locate and understand.
"The industry has made strides in fee transparency, but there's
still work to be done," added Licklider. "Simplifying fee
disclosures and providing investors with the tools to make informed
decisions should be a top priority for investment firms and
financial professionals."
About DALBAR
DALBAR is the leading independent financial services market
research firm dedicated to uncovering the needs, concerns, and
behaviors of investors and financial professionals. For over four
decades, DALBAR has provided actionable insights to help firms
improve their products, services, and communications.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20240814437628/en/
Media: Emily Kunka 617.624.7136 ekunka@dalbar.com