Canadian investors are more certain of their investment personality traits in 2013 and greater numbers are open to taking risks, according to the latest research from Toronto-based Franklin Templeton Investments Corp.
The January 2013 survey found that 82% of investors identify themselves as having a specific investment personality, up from 68% in 2009. The percentage of investors who identify themselves as ‘risk-taking’ has increased to 14%, up from a relatively steady eight per cent in the past four years.
“Canadian investors are becoming more confident and open to taking risks than at any time since Franklin Templeton started its investor personality research in 2009,” says Don Reed, president and CEO of Franklin Templeton.
The survey also found that 46% of investors are worried about running out of money in retirement, but this declines with age.
People are less worried about running out of money in retirement once they are aged 55 or over (34%) compared to those aged 35 – 54 (53%) and 18 – 34 (56%).
Only 11% have no financial concerns about retirement.
“Since 2008, many people have moved their retirement savings into low-yielding bonds and cash, so any investment growth has lost out to inflation,” says Reed. “To help grow their RSP, Canadians need to invest in the equity markets over the long-term. One way to get back into the markets is to dollar-cost average into an equity mutual fund or balanced fund.”
The online survey was conducted from January 15 to 16 among 946 randomly selected Canadian adults who currently invest in stocks, bonds or mutual funds or have done so in the past five years, and who are Angus Reid Forum panelists. The margin of error is +/- 3.05%, or 19 times out of 20.