41% of rich Singaporeans seek investment advice from relatives over financial advisors

Looks like blood is truly thicker than water when it comes to investment decisions.

However, according to a release, RMs clearly still have a role to play, with the study showing Singapore’s affluent do not like a sales-driven approach but instead they prefer a more relational approach when making investment decisions. As such, investment advice from friends and family (41%) is routinely ranked higher than personal financial advisors (36%). Part of this inherent mismatch lies within Singaporeans’ preference for updates based on unbiased views of investment opportunities supported by well-researched analysis instead of being recommended products that financial service providers want to promote.

Justin Garrett, Executive Director, Financial Services at TNS Singapore said:
“The real interest comes when you see how and what the affluent in Singapore want from these financial advisors in helping them make investment decisions. This could explain the reliance on friends and family members for advice as they might be considered less biased in their opinion – even if that advice may be less informed. It seems that financial advisors need to take on a more individual and customised approach when dealing with Singapore’s wealthy. Interestingly, tapping into the online and digital information behaviours that clients clearly have may prove to be the sweet spot for that reconnection.”

The TNS Global Affluent Investor was conducted in 24 markets worldwide from May to August this year. In total, 12,092 decision-makers of affluent households with investable assets more than USD$100,000, of which 250 were Singaporeans, were interviewed for the study.