Do-it-yourself investing

In addition, the advent of discount brokerages, proliferation of free financial resources on the Internet, and the availability of online research tools have also contributed to a large increase in DIY investing in recent years.

[1] A common misconception regarding DIY investing is that it mainly involves the ongoing research, selection and management of individual securities such as stocks or bonds.

This can substantially reduce an individual's wealth over time and is one of the primary reasons that many DIY Investors prefer do take control of their own investment funds.

"Typical characteristics of the Do It Yourself (DIY) investor include contrarian points of view and modest budgets that can't afford professional advisors.

This may include investment representatives, portfolio managers, brokerages, operating expenses, trading costs and miscellaneous items.

A DIY investor has the potential to reduce fees by eliminating the various middlemen located throughout the advised-client model by accessing investment products and securities through a discount brokerage.

As a result of reducing fees, DIY investors have the potential to increase their returns by retaining the expenses they would have otherwise paid to investment representatives, middlemen and financial intermediaries.