Advertiser Disclosure

Increased Competition For RIAs

Nov. 12, 2013
Brokers, Investing
At NerdWallet, we adhere to strict standards of editorial integrity to help you make decisions with confidence. Many or all of the products featured here are from our partners. Here’s how we make money.

According to a Charles Schwab survey, close to half of RIAs believe that online investment advisories will soon be one of their top competitors. Online competition is coming from two fronts – traditional online brokers that are beginning to offer advisory services and a new wave of personal finance startups. While the benefit that these new competitors offer consumers is primarily centered around cost, RIAs believe that the lack of personalization and one-on-one interaction will impede the growth of these competitors in the market. That said, most RIAs do recognize that a younger generation of clients will likely need a different service model than what is used today. Much of the online advice space, particularly new wealth management startups such as Betterment and Jemstep, use algorithmic-based investment advice to generate portfolio recommendations.

T. Rowe Price is launching a new industrials-focused mutual fund. The fund will invest 80% of its net assets in industrials, and 40% of its assets in companies outside the U.S. across at least five different countries. Net expense ration will be around 1.05%, with the minimum initial investment at $2,500 or $1,000.