Are Prepackaged Model Portfolios Better Than Customized Allocations?
May 10, 2016
New Cerulli research argues that home office prepackaged model portfolios have been more popular with investors over a five-year period than customized advisor portfolios. Cerulli says prepackaged products are less tactical but have a stronger emphasis on risk-adjusted returns and consistent styles of investing. Cerulli also believes advisors are sometimes over-influenced by their clients. Are prepackaged products better than the allocations advisors come up with themselves?
|No. Pre-packaged products don't account for the individual's circumstances.|
|Yes. The client's better served if you find the right pre-made portfolio, rather than trying to build it yourself.|