Cerulli: Financial Advisors Plan to Prioritize Use of Model Portfolios Over Funds of Funds

Financial advisors are increasingly turning to model portfolios as a way to manage their clients' investments.

This is according to a new study from Cerulli Associates, which found that 63% of financial advisors plan to increase their use of model portfolios in the next 12 months.

The study also found that financial advisors are increasingly using model portfolios to manage risk and meet the specific needs of their clients.

Model portfolios offer a number of advantages over funds of funds, including:

• Greater flexibility
• Lower costs
• Improved risk management

As a result of these advantages, model portfolios are likely to continue to grow in popularity among financial advisors.

Here are some of the key findings from the Cerulli study:

• 63% of financial advisors plan to increase their use of model portfolios in the next 12 months.
• 78% of financial advisors believe that model portfolios are a good way to manage risk.
• 75% of financial advisors believe that model portfolios are a good way to meet the specific needs of their clients.

Conclusion

The Cerulli study shows that financial advisors are increasingly turning to model portfolios as a way to manage their clients' investments.

Based on these results, financial advisors are increasingly recognizing the advantages of model portfolios for managing risk and meeting the specific needs of their clients.