In addition, the research found 51 per cent of investors who have SMSFs use the services of a financial adviser.

“Investors with financial advisers were more likely to have diversified portfolios, were satisfied with the advice they received and would recommend their adviser to friends or family,” Golman Sachs stated.

Also, 91 per cent of respondents who had a financial adviser were either ‘very satisfied’ or ‘satisfied’, with women more likely to be ‘very satisfied’ than men.

A further 66 per cent of people who had a financial adviser said that their financial adviser had the biggest influence on their investments decisions, compared with 65 per cent of investors who did not have a financial adviser who relied on their own experience, views and knowledge.

Broadly, Golman Sachs found retail investors have low confidence in Australia’s economic outlook and low appetite for investment risk.

“The survey revealed a clear and concerning disconnect between confidence in the domestic economy, which was low, and confidence in the outlook for domestic equities, which was high,” said Jessica Jones, managing director and head of third party distribution at GSAM for Asia Pacific (excluding Japan.)

“Retail investors appear to be ignoring some important macro themes as they set investment intentions, and in our view the data points to an ongoing lack of meaningful diversification in investment portfolios.”

“Of particular concern was the fact that those aged over 65, who should be focused on reducing investments in high-volatility assets, were in fact the most likely to have an allocation to domestic equities.

“Further, more than 36 per cent of this age group intended to invest more capital in this asset class in the next 12 months. At the same time, less than a quarter of this age group (17 per cent) had direct fixed interest allocations, an asset class which provides important diversification benefits.”