Affluent Millennials Seeking Investment Advice

Ninety percent rely on financial advisers to diversify their portfolio.

Affluent Millennials engage with financial advisers and, generally, have a positive outlook on their finances, the markets and the economy, according to a recent survey by AMG Funds. 

Ninety percent rely on financial advisers to diversify their portfolio; 86% have a long-term outlook on their investments; 83% are open to a broader approach to investing, including alternatives; 73% think the U.S. economy will improve; and 60% are willing to pay more for the oversight of their investments.

Additionally, 78% believe that active management provides incremental value, 55% currently own actively managed mutual fund, and of this group, 94% plan to increase their exposure. The top investment goal for more than one-quarter of affluent Millennials, 27%, is to grow their portfolio. As well, 27% want to generate income. Seventy-three percent think they are well-positioned for a market downturn. However, if the market were to correct by 20% or more, 30% of Millennials would either scale back their equity exposure or exit the market altogether.

“The findings of our study provide meaningful insight into the mindset and outlook of a highly important demographic among individual investors,” says Jeffrey Cerutti, CEO of AMG Funds. “Our findings show that Millennials have an open mind with respect to investing, and that even in an increasingly technology-driven world, they value the skill of experts in both stock picking and financial advice.”

AMG surveyed 980 Millennials with $250,000 or more in household investable assets last September.