Against the current investment climate – marked by prolonged volatility and inflationary pressures – there are persistent gaps between mass affluent investor intentions and actions, which highlight how access alone is not enough to achieve successful financial outcomes, according to a recent report.

Hong Kong investors list generating additional income ( 57% ) and retirement ( 56% ) as their top investment goals, reflecting a balancing act between short-term financial needs and long-term retirement planning, finds the Endowus Wealth Insights Report 2025: Improving Investing Success, published by Asian wealth adviser Endowus, which examines the investor behaviour and preferences of mass affluent individuals in Hong Kong and Singapore.

However, only 31% of Hong Kong investors, the report reveals, make investment decisions based on these financial goals, revealing a significant disconnect between intention and execution.

Singaporean investors, in comparison, demonstrate a more goal-oriented approach. Over two in five ( 42% ) of investors, the report notes, cite “suitability to financial goals” as a key investment consideration, indicating a stronger commitment to long-term planning and goal-based investing.

While Hong Kong investors acknowledge retirement as a top goal, they continue to make decisions based on short-term metrics, such as projected returns ( 58% ), fees ( 51% ), market trends ( 48% ) and risk levels ( 45% ).

This, the report states, reveals how short-term noise may distract investors from long-term objectives. Notably, among investors aged 55 and above, 80% of whom say they prioritize projected returns, highlighting a stronger inclination towards immediate performance over longer-term growth.

These patterns may stem from both investor psychology and industry practices, the report details, including the use of headline-grabbing yields on marketing materials. Such messages may distort perceptions of performance, even when accurate in most cases, and lead investors to prioritize short-term gains, often at the expense of consistent, long-term value creation.

“[There’s] a paradox between what investors claim to prioritize and the actual actions taken,” says So Sin Ting, Endowus’ chief client officer. “Advisers must shift the conversation from just discussing investment features like past returns or liquidity to framing these elements in service of long-term financial wellbeing.”

Portfolio adjustment, fees

Notably, 24% of Hong Kong investors adjust their portfolios at least once a month, the report finds, a frequency that can have negative consequences. Over a five-year period, data from S&P Global’s S&P Indices Versus Active show, 89% of US active equity funds underperformed the S&P Composite 1500 Index. Over a one-year timeframe, 60% of such funds underperformed. Even professional fund managers, the report points out, cannot consistently get it right.

Frequent trading also compounds various fees, especially those on transactions and commissions. While 58% of investors say fees are a key concern, the impact of these charges is magnified by frequent changes. Furthermore, there is a lack of awareness of investment fees, the report notes, with 29% of Hong Kong investors either not understanding, or having never discussed, fee structures with their advisers.

This contradiction between fee sensitivity and fee transparency, the report suggests, signals a key opportunity for improvement in the client-adviser relationship. Advisers should clearly disclose fee structures to avoid any potential conflict of interest, and more should be done to educate investors to pose the right questions.

Trust in advisers strong, but alignment needs work

Trust is foundational to effective financial advice, the report states, and 82% of Hong Kong investors express satisfaction with their advisers. Investors cite financial professionals as their most trusted sources, followed by licensed institutions, business publications and other reputable sources.

However, many investors also turn to informal networks as the most useful sources of knowledge, including peer referrals, investment clubs and professional communities, to act on this information. This suggests that while credible, formal sources of information play a role in informing, the influence of personal connections in decision-making is more pronounced. 

Despite this high level of satisfaction, fewer than half of Hong Kong investors, according to the report, feel that their financial advisers have sufficient knowledge of their investment needs. Only 40% and 39% of investors say their advisers understand their short- and long-term goals, respectively. Additionally, only 36% feel their advisers understand their portfolio composition and performance. 

Even fewer investors, the report reveals, feel their advisers proactively support goal attainment. Only 34% believed advisers clearly explain how investments suit their goals, and a mere 22% strongly agree that their advisers actively help them achieve those goals.

While there appears to be a strong baseline of trust in both Hong Kong and Singapore, according to the report, there is also a need to evolve client-adviser interactions towards greater meaning and alignment.

Financial advisers play a pivotal role in anchoring investors through market shifts. As trusted fiduciaries, the report notes, they should help clients stay grounded in the ‘why’ behind each investment.

This role becomes more vital as digital investment tools make self-directed investing easier, the report suggests, increasing the need for hybrid advisory models that blend human expertise with tech-enabled access. Advisers need to connect investment choices to a broader financial plan that is focused on eventual goals.

“When both clients and advisers focus on goal-setting, the quality of interactions will improve,” adds Gregory Van, Endowus’ co-founder and CEO, “and this shift will enable a transition from product-led selling to holistic wealth advice that considers the full breadth of client needs and aspirations.”