CPD Courses  

How to cater for a new but nervous investor

  • Consider the factors behind investor nervousness.
  • Explain how to establish an effective risk-profiling assessment.
  • Understand how to build resilience in new clients.
CPD
Approx.30min

Advisers can also help nervous clients to overcome the indecision or excessive caution that may mean they fall short of their financial goals. This, of course, is just the beginning of the process. Throughout the relationship, an adviser must provide comfort and support during times of market volatility, as well as ongoing education.

Louis Williams is head of psychology and behavioural insights at Dynamic Planner

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CPD
Approx.30min

Please answer the six multiple choice questions below in order to bank your CPD. Multiple attempts are available until all questions are correctly answered.

  1. What should advisers do with a new client who shows hesitancy about investing in the stock market?

  2. A financial planner who has an in-depth understanding of a client’s unique circumstances has no bearing on whether the client has a sense of wellbeing.

  3. What is the inclination to give weight to recent experiences known as?

  4. What is regret aversion bias?

  5. While most rational investors will convince themselves they will hold their investments during times of volatility, the reality is often different.

  6. What is one way that an adviser can remove the emotion-eliciting solution from a client’s financial planning focus according to the author?

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You should now know…

  • Consider the factors behind investor nervousness.
  • Explain how to establish an effective risk-profiling assessment.
  • Understand how to build resilience in new clients.

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