Date: 26th May 2021

“Behavioural finance experts [at Oxford Risk] have found financial advisers can give “remarkably different” advice from each other to the same clients based on factors including sleep or how long since the adviser last ate.”

They said that recommendations “were closer to totally random than totally consistent” and were, furthermore, dependent on advisors' personal characteristics such as income, marital status and education.

Though far from perfect, algorithms such as those used by robo-advisors, would not be subject to such biases and random influences, though they come with their own set of issues as shown in several studies by BETTER FINANCE (Robo-Advice 5.0.: Can Consumers Trust Robots?)

  • Read the full Funds Europe article here.