More than a third of affluent investors are using social media platforms specifically for their own finance and investing activities, a new report finds.
While most investors continue to rely on several resources for investment information, nearly 70 percent of 4,000 surveyed investors nationwide have reallocated investments, or began or altered relationships with investment providers based on content on sites such as Facebook, LinkedIn, Twitter, YouTube and company blogs.
Investors have the most positive impressions of Hub financial giant Fidelity Investments via the firm's social media channels, according to the report by Cogent Research of Cambridge.
"Fidelity is one of the very active brands online engaging consumers, talking to them on Facebook, giving them quizzes and stories. It does seem to be working and creating an effect," said Remy Domler Morrison, a Cogent project director.
Lori Johnson, Fidelity's vice president of online strategy, said the firm focuses on "education and informative conversation."
"Whether it's discussing thought leadership pieces on investing or developing apps on Facebook that allow users to envision their future, plan for big and small life events and track progress toward personal goals, the foremost purpose is to equip investors with content, tools and discussion that can help empower their financial lives," she said.
Morrison added that social media is motivating investors to engage more with their advisers and investment firm representatives, which can lead to more asset-gathering opportunities for providers.
A 2011 survey by Massachusetts' securities division found that nearly half of registered investment advisers use social media to interact with clients.
That prompted the state to issue guidelines covering such online broker-client interactions, which amount to advertising, so they conform to existing consumer protection regulations.
Most Popular Stories
- Slow Week Ahead of December FOMC Meeting
- Hispanics Seek to Grow School Board Members
- U.S. Companies Eager for Iranian Business
- 'Knockout Game': Myth or Menace?
- Questions Remain in Jenni Rivera's Death
- Banks Fret as Volcker Vote Approaches
- Bitcoin Used to Buy Tesla Car
- GM Bailout Saved 1.2 Million U.S. Jobs, Report Says
- Paul Walker Fans Pay Respects
- Entrepreneurs' Next Creation May Be New Laws