Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/236332 
Year of Publication: 
2021
Series/Report no.: 
IZA Discussion Papers No. 14301
Publisher: 
Institute of Labor Economics (IZA), Bonn
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.
Subjects: 
financial advice
financial risk
household financial portfolios
JEL: 
D81
G11
D14
Document Type: 
Working Paper

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