Canadian investors consider themselves savers, feel cautiously confident in investment markets, and remain largely unaware of recent controversies surrounding the mutual funds industry, according to a new survey commissioned by Saxon Funds Management Ltd.
The survey, conducted by Decima Research, also revealed that more and more Canadians consider themselves “involved investors”, seeking more control over their investments than ever before.
In comparing their investment style to the characters of Aesop’s famous fable, an overwhelming number of investors liken themselves to the ant that saves for the future. 72% of respondents say their investment style is more like the ant’s – reflecting a desire to save for tomorrow. In comparison, just 25% identify more with the singing grasshopper and claimed to live – and spend – “for the day:.
More than half of Canadian investors (53%) are bullish about financial markets, while 43% are bearish. There’s some caution, though: Only tiny minorities feel “strongly” bullish or bearish (4% each), with 49% “somewhat bullish” and 39% “somewhat bearish.”
Despite today’s relatively strong markets, 35% of investors report having regrets about their investments in the past year.
According to the survey, most investors are unaware of recent controversies related to some large players in the mutual funds industry. Only 41% of those surveyed say they are aware of any controversies. Of that group, only half have a sense of the details. Nonetheless, 45% of respondents said the “current state of the industry” has made them less likely to invest in mutual funds in 2005.
Survey respondents also report that they are becoming more involved in managing their own investments. 61% say they are more involved in their investments today than in the past, with 20% saying they are “significantly more involved”
When probed about what affects their investment decisions, respondents say they are influenced by their own research, professional advice, low fees and conditions, and performance, but not so much by other investors. A whopping 84% think what their investment professional advises them to do is important.
“Three words define Canadians’ approach to their investments — control, conservatism and confidence,” said Allan Smith, chief operating officer of Saxon Funds. “They’re becoming more involved, and being more careful with their money – and perhaps that’s why they’re cautiously confident as we head into RRSP season.”
The telephone survey was conducted with 455 Canadian investors between the ages of 25 and 65 between December 16 and December 20, 2004. It was conducted by Decima Research Inc., on behalf of Saxon Funds Management Limited. Results to the survey can be considered accurate to within plus or minus 4.6 %, 19 times out of 20.
Most Canadians unaware of fund industry controversies, survey finds
- By: IE Staff
- January 14, 2005 October 31, 2019
- 08:55