Cerulli’s report shows that newer, innovative technology and rising investor expectations are opening the door to tax-aware portfolio customization for mass affluent households. For financial advisors, this shift is a chance to deepen relationships—if they can scale these capabilities.
Benchmarking high net worth investors
According to Cerulli, the share of financial advisor assets managed for high net worth (HNW) clients (with more than $5 million to invest) rose to 66% in 2023, reaching $20.6 trillion.1 These clients expect sophisticated solutions, including tax optimization, direct indexing and customized separately managed accounts. Advisors serving HNW clients know that customization is no longer a “nice to have”—it’s now the price of admission.
Scaling customization
Smarter technology is making personalized customization available for mid-wealth households. Asset managers with upgraded platforms can now offer customization and tax management at lower account minimums. Direct indexing, once considered a tool for ultra-wealthy investors, is now being extended to mass affluent households (with less than $2 million in assets).
Although many financial advisors may still view tax management as a HNW differentiator, Cerulli’s data suggests the market is shifting. Many wealth managers, asset managers and technology providers are working to scale these services for the mass affluent tier.
Building a competitive edge
Nearly 80% of affluent investors say they want accounts tailored to their specific circumstances, and 69% also want their provider to help cut their tax bill. To stay competitive, financial advisors should be equipped to offer customization and tax management services.
While one option may be leveraging firm-provided tools, these may fall short on sophistication or scalability. By partnering with a specialized asset manager like Parametric, advisors have access to best-in-class solutions that they can integrate into their current practice.
The bottom line
As customization moves from HNW to mass affluent investors, clients now expect tax efficient solutions across wealth tiers. Advisors who want to stay ahead should consider embracing technology and leveraging partnerships to deliver tax-aware portfolios at scale.
To explore all the data and insights, download the full Cerulli report here.
1 Source for data in this blog: Customized at Scale: A Framework for Next-Generation Advisory Platforms, October 2025. Cerulli Associates is an international research and consulting firm that provides financial institutions with guidance in strategic positioning and new business development. This study was sponsored by Parametric. Parametric is not affiliated with Cerulli Associates or any of its affiliates.
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