​Investment - Providing Services to Retail Clients

The full range of services that are utilized by high-net-worth investors and institutional investors is often not required by retail investors like retail investors. Financial planners and brokers are typically the ones who provide retail clients with assistance and advise on investment management. This assistance and advice might include asset allocation, investment analysis, and portfolio construction activities.

It is possible for professionals who recommend trades and investment arrangements to collect commissions from the companies that sell the mutual funds and life insurance policies that clients purchase as a result of their recommendations. Others are professionals who only accept money from their clients and do not accept any other kind of payment.

In contrast to brokers and agents, who receive commissions on the trades and contracts they recommend, fee-only experts do not have any incentives to generate income by promoting particular items or making an excessive number of trades. Retail clients also have the option of putting their investing strategies into action by making passive investments in pooled investment vehicles, such as mutual funds, which are managed by professionals.