Despite a recent upturn in financial markets, seven in 10 Canadians say they are still willing to sacrifice the potential for larger gains in their investment portfolio as a trade-off for safety, according to the results a survey released Thursday by Bank of Montreal.

The survey, conducted by Leger Marketing, shows the majority of Canadians are still wary of the markets amidst recent optimism, with 61% saying they are worried about the safety of their investments and 74% looking to include investments that guarantee returns.

Other key findings include:

> Compared to two years ago, 66% are more open to holding investments that guarantee regular returns

> Regionally, those in Ontario and the Prairies are more likely to be looking for guaranteed investments (68% and 69% respectively), relative to those in B.C. (56%)

> Those aged 55+ are more likely to be looking for guaranteed investments (72%) vs. those aged 18-34 (57%)

> Those who have an annual income of $60,000+ are more likely to be looking for guaranteed investments (71%) relative to those who have an annual income of less than $40,000 (56%)

The survey was completed with 1513 Canadian adults and was conducted using Leger Marketing’s Web panel between October 25 and 27.

“The stats clearly underscore the fact that Canadians are looking for ways to protect and keep more of their money,” says Martin Nel, vice president, lending and investment products, BMO Bank of Montreal. “A GIC provides 100% security on the principal investment, and protection doesn’t have to translate into a sacrifice of gains.”

While traditional GICs are widely used as a way to lower risk and guarantee a return, there are other innovative GIC products available, such as market-linked GICs, which offer the potential for bigger gains with the same safety net attached.

For example, BMO recently launched the BMO Blue Chip GIC, which offers the shortest term available for a guaranteed investment at one year, while providing exposure to some of Canada’s most reliable blue chip companies.

IE