Periods of market volatility are an inevitable part of investing and helping clients to navigate them is a core part of financial advice. As a Morningstar behavioural research report notes: “In fact, helping clients withstand volatile markets is one of the most valuable services an adviser provides.”
A recent study by Morningstar’s behavioural research team explores how advisers support clients during volatile markets and how those interactions unfold in practice.
The study surveyed 47 financial advisers from the Morningstar Behavioural Research Circle, a panel of advisers interested in applying behavioural science to financial advice.
Participants represented six countries – the United Kingdom, the United States, Canada, Australia, South Africa, and India – and averaged 19 years in practice.
The research was conducted in June 2025, with advisers asked to reflect on their experiences during a recent bout of market volatility earlier that year. The sample included advisers working across different industry channels and business models.
The aim was to better understand how clients interact with advisers during periods of market stress and how advisers manage those conversations.
Advisers often initiate the conversation
The findings offer a different perspective on a common industry narrative that market downturns trigger a surge of anxious client calls. Instead, advisers reported that they initiated conversations about market volatility 58% of the time on average.
Advisers most often raised the topic during in-person meetings (36%) and by email (35%).
Among clients who did initiate contact, 41% reached out via email, followed by 32% by phone, and 15% in person.
Because written communication plays a significant role in these interactions, the report notes that advisers may benefit from having clear written explanations or educational materials prepared for clients.
Outreach should be measured
The research also suggests advisers should be thoughtful about how they communicate with clients during volatile markets.
Advisers typically monitor markets more closely than their clients, and some clients may not be aware of short-term market fluctuations. For that reason, the report suggests placing less emphasis on the immediate volatility itself when reaching out broadly to clients.
Instead, advisers may consider:
- sending general communications reminding clients that their adviser is available as a long-term resource; and
- providing more personalised reassurance to clients known to be particularly anxious about markets.
Which clients tend to reach out
Advisers reported several patterns among clients who contact them during volatile markets.
The most common were:
- Clients new to investing or new to the adviser’s practice (34%).
- Clients relying on investments for income, such as retirees (28%).
- Clients who tend to be cautious or worry about markets (24%).
Other groups included clients influenced by media or social networks, clients particularly concerned about risk, those who had recently made significant portfolio changes, and clients who manage their own funds.
These findings suggest that advisers may encounter concerns across different client segments rather than among a single demographic group.
What clients want to discuss
When clients raise questions during volatile markets, advisers reported that conversations tend to focus on understanding the situation and its implications.
The most raised topics were:
- The causes of market volatility (47%).
- How their investments are performing (31%).
- Potential implications for their financial security or lifestyle (17%).
Less frequently, clients asked about market expectations or whether they should adjust their investments.
Only 6% asked about investment opportunities, and 3% asked whether volatility might affect their long-term financial goals.
The report notes that advisers may therefore need to redirect conversations toward long-term objectives and the broader financial plan.
Clients are often curious rather than fearful
Advisers participating in the study generally reported that most of their clients were not predominantly scared or worried during periods of market volatility. Instead, many described their clients as curious about what was happening in the markets.
The researchers suggest this observation may partly reflect the fact that advisers in the panel already incorporate behavioural science insights into their practices.
However, advisers also reported that clients were rarely opportunistic during market downturns, indicating that many investors may struggle to recognise potential opportunities during periods of volatility.
Strategies advisers use during volatility
Advisers described several tactics they use when guiding clients through volatile markets. These included:
- Proactive education about market volatility.
- Providing market education during volatile periods.
- Encouraging a long-term investing perspective.
- Providing decision-making support.
- Reviewing and adapting financial plans when appropriate.
- Reframing volatility as a potential opportunity.
Most advisers reported using a tailored approach to volatility conversations. In the study, 68% said they customised their discussions to individual clients rather than relying on a fixed script. Some advisers combine this flexibility with a checklist of key points to ensure that important topics are consistently addressed.
Lessons from different approaches
The research suggests advisers using different communication styles may learn from each other’s approaches.
Advisers who rely primarily on tailored conversations may benefit from emphasising the long-term nature of investing when clients become focused on short-term market movements.
Meanwhile, advisers who follow a structured strategy may strengthen conversations by reviewing the client’s financial plan and demonstrating how the portfolio was designed to accommodate market fluctuations.
Behavioural coaching and client mindset
The research also examined the role of behavioural coaching.
Advisers who reported using at least one form of behavioural coaching were also more likely to report having clients who approached market volatility opportunistically.
The report describes this as preliminary evidence suggesting behavioural coaching may be associated with a more constructive client mindset during market turbulence.
How advisers’ approaches evolve over time
Advisers in the study reported that their approach to volatility conversations has evolved over the course of their careers.
Many described improvements in:
- communication skills,
- confidence when managing client conversations,
- reassurance techniques, and
- client education and preparation.
The report notes these changes reflect a growing emphasis on the human and behavioural aspects of financial advice alongside investment expertise.
Practical steps advisers can take
The research also highlights several practical ways advisers can strengthen their approach to volatility conversations. These include:
- Reviewing communication practices. Advisers can review recordings or transcripts of client conversations to identify opportunities to improve listening, empathy, and clarity of explanation.
- Learning from experienced colleagues. Advisers earlier in their careers may benefit from discussing past market downturns with more experienced practitioners to build perspective and confidence.
- Tracking which reassurance strategies work. Because advisers often use several techniques when markets become volatile, monitoring which approaches result in calmer and more confident client responses may help refine future conversations.
An inevitable part of financial advice
The report concludes that market volatility is an unavoidable feature of both financial markets and the financial planning profession. For advisers, preparing clients for these periods and guiding them through them is a recurring part of the role.
Effective communication, investor education, and behavioural guidance may therefore remain central elements of how advisers support clients when markets become uncertain.
