A survey conducted for the Investment Funds Institute of Canada found that 62% of Canadians with household income of $60,000 or more are likely to invest in equity mutual funds over the next five years.

The survey, conducted for IFIC by Leger Research, found similarly high intentions to invest in equity mutual funds (excluding money market funds) among university educated Canadians (59%) and people who described their occupation as professionals (57%).

Almost half of Canadian adults (49%) said they owned mutual funds in their current investment portfolio.

The survey also asked investors why they put their savings into mutual funds. Ninety per cent of survey respondents said they used funds because they were managed by an investment professional, while 89% said funds provided diversification.

“The reality is most people don’t have the time or confidence to choose individual stocks and bonds. Even when people do have time, they want to spend it on other more enjoyable past-times. Mutual funds give them the long-term benefits of the stock market without the headaches,” said Tom Hockin, president and CEO of IFIC.

Hockin defended the value of fees charged by Canadian fund companies. “As a way to achieve an international, diversified and prudent portfolio, mutual funds offer excellent value.

IFIC says comparing fund expenses between Canada and the U.S. should be done carefully to ensure an “apples with apples” comparison. When compared evenly, the differences in fees become smaller. It adds that higher operating costs in Canada resulting from multiple federal and provincial regulatory bodies and communicating in two languages are legitimate reasons for higher fees paid by Canadian investors.

Leger Research completed a total of 1509 interviews between November 18 to 23, 2003. The margin of error for a sample of this size is +/- 2.5%, 19 times out of 20.