The capacity to buy directly and trade on the ASX was the other main reason cited by advisers, also at 57 per cent.

This was followed by a greater understanding overall of the benefits of LICs at 37 per cent.

Perpetual Investments portfolio manager Vince Pezzullo said recent falls in the market have not deterred advisers and SMSF trustees from investing in LICs.

An increased appetite for LICS among advisers is evident from the inclusion of LICs such as PIC on major wrap platforms and the approved product lists of dealer groups, Perpetual said.

“There is increasing demand for LICs because they are transparent and liquid investments and these are features which investors, particularly SMSFs, are seeking,” Mr Pezzullo said.