Canadian investors are becoming better informed about the value of diversification, according to a recent survey conducted by BMO Term Investments, a member of Bank of Montreal’s Private Client Group. Nearly half of the respondents indictaing that they have a balanced portfolio using investment options such as fixed-income products, equities, mutual funds and cash.

The survey, conducted by Thomson Lightstone & Company in April 2002, found that 47% of Canadians state that security is their primary investment objective.

Retirement and long-term investing are the primary savings goals for over half of Canadians. Fifty-eight per cent of respondents over age 50 are most interested in retirement savings, while 37% of younger respondents, aged 25 to 29, are saving for a down payment on a home or another savings goal besides retirement.

When asked how they would invest $15,000, nearly 40% opted to spread the amount across a variety of investment options to ensure a balanced portfolio. The second and third most popular choices were to invest in either guaranteed investment certificates or mutual funds.

Over half of the respondents state they currently hold up to 25% of their portfolio in fixed-income investments, using equities, cash and mutual funds to balance out the rest. Quebecers appear to be the most concerned with security, with 60% indicating they hold up to 25% of their portfolio in fixed-income products. However, 10% of Canadians do not know the percentage of fixed-income products in their portfolio.

Investors are also seeking help when researching and choosing their potential investments. Seventy-six per cent say they seek financial advice from their financial institution, bank or an independent financial advisor. Other sources of investing information include friends and family, 11%, and the Internet, 3%.