Fidelity ranks high with wealthy investors, who prefer large, diversified financial institutions.
Fidelity, Charles Schwab and Morgan Stanley Smith are the financial service providers most widely used by the nation’s high net worth investors.
Millionaires with a net worth of $5 million to $25 million are most likely to use the mutual fund giant Fidelity as their primary provider. Discount brokerage firm Charles Schwab is the second most widely used, according to the most recent quarterly study by Millionaire Corner, which examines the relationship between wealthy advisors and their clients.
Morgan Stanley Smith Barney, Bank of America-Merrill Lynch and Wells Fargo-Wachovia rank in the top five primary providers.
Historically, wealthy investors prefer to work with large, national institutions with a reputation for stability. High net worth millionaires also show a marked preference for working with a diverse financial institution. More than three-fourths prefer a diverse financial services firm to a specialty firm.
Fidelity describes itself as “among the most diversified financial services companies in the world.” The firm has $3.5 trillion assets under administration, including managed assets of $1.6 trillion, according to the latest data on the company website. Fidelity is one of the largest mutual fund companies in the world and the nation’s top provider of Individual Retirement Accounts. The company offers retirement planning, portfolio guidance, brokerage services to more than 20 million individual and institutional clients, as well as more than 5,000 intermediary firms.