Should You Hire an Investment Consultant in 2025? Pros, Cons & What to Know

With inflation still lingering, superannuation rules evolving, and global markets as unpredictable as ever, Australians in 2025 face a crucial question: should you manage your investments solo, or is it time to hire an investment consultant? The right advice can grow your wealth, but with the rise of robo-advisors, fee-only planners, and new ASIC requirements, the investment landscape has never been more complex.

What Does an Investment Consultant Do?

An investment consultant is a qualified professional who guides individuals, families, or institutions on how to allocate assets, diversify portfolios, and meet specific financial objectives. Unlike a general financial adviser, investment consultants often specialise in tailoring strategies to investment goals, risk tolerance, and the latest market conditions.

• Portfolio construction: Advising on asset classes (shares, bonds, property, alternatives) and rebalancing as markets shift.

• Regulatory compliance: Ensuring your investments align with 2025’s tightened ASIC and APRA rules, especially around superannuation and managed funds.

• Tax efficiency: Suggesting investment structures that take advantage of the updated CGT discount rules or franking credits.

• Behavioural coaching: Helping you avoid emotional decisions during market volatility, like the tech sell-off in early 2025 or the surge in ESG investments.

2025 Trends: Why More Australians Are Seeking Consultants

This year has seen a spike in demand for investment consultants, driven by:

• Superannuation complexity: The government’s Super Transparency Act 2025 introduced stricter reporting standards and more choices for self-managed super funds (SMSFs), leaving many DIY investors overwhelmed.

• ESG and impact investing: With green finance and ethical investing topping 2025 inflow charts, consultants help clients navigate new ESG ratings and avoid greenwashing traps.

• Tech disruption: AI-driven portfolio tools have lowered barriers to entry, but investors still crave human expertise for major decisions and market shocks—like the property sector correction in March 2025.

• Increased regulatory oversight: ASIC’s latest crackdown on unlicensed advice and conflicted remuneration means Australians are seeking qualified, transparent consultants more than ever.

Real-world example: After the 2025 tech stock correction, many Australians who worked with consultants reported smaller losses and faster portfolio recovery, thanks to diversified asset allocation and disciplined rebalancing.

How to Choose the Right Investment Consultant

Not all consultants are created equal. Use these steps to find one who suits your goals and complies with Australia’s latest standards:

• Check credentials: Ensure they’re licensed by ASIC and hold relevant qualifications, such as Certified Financial Planner (CFP) or Chartered Financial Analyst (CFA).

• Ask about fees: In 2025, transparent fee structures are the norm. Look for flat fees or percentage-of-assets models, and avoid hidden commissions.

• Assess independence: Seek consultants unaffiliated with product providers. ASIC’s 2025 review found conflicts of interest remain a key risk for investors.

• Review their track record: Ask for client references and performance data—especially how they managed portfolios during volatile periods like the March 2025 downturn.

• Evaluate communication: A good consultant will explain strategies in plain English, provide regular updates, and adapt plans as your life changes.

Tip: Use the ASIC Financial Advisers Register to verify your consultant’s license and disciplinary history.

Is an Investment Consultant Worth It?

Consider an investment consultant if you:

• Have $250,000+ in investable assets or a complex superannuation structure

• Want to actively incorporate ESG or alternative investments

• Are nearing retirement and need a transition plan under the new Age Pension means test rules

• Feel overwhelmed by market noise, regulatory changes, or tax implications

For those with simple needs or smaller balances, robo-advisors or DIY platforms might suffice. But for many Australians in 2025, the value of tailored, professional advice is hard to overstate—especially when navigating regulatory changes and volatile markets.