For the tenth year in a row, mutual funds continue to be the savings vehicle of choice for Canadian investors and the vast majority buy through a financial advisor, according to research by the Investment Funds Institute of Canada (IFIC).
The 2015 report: Canadian Investors' Perceptions of Mutual Funds and the Mutual Fund Industry, conducted by Pollara on behalf of IFIC, found that 87% of investors believe funds will help them meet their financial goals. Fewer investors express confidence in stocks (62%), GICs (61%) and bonds (55%).
Confidence in financial advisors remains high, with 94% of mutual fund investors trusting their advisor. The preferred source of information about mutual funds from advisors comes through conversations (82%), newsletters or emails (64%) and advisor websites (53%). The other top source is news media (57%) such as Wealth Professional
Ninety-one per cent of respondents believe they received a better return on their investments than they would have without an advisor. This supports recent studies by CIRANO and the Conference Board of Canada highlighting how financial advice increases investor savings.
Benefits are enjoyed by investors at all levels, many of whom have small accounts when they begin investing. Forty per cent of those surveyed had less than $10,000 to invest when they first started using an advisor, and 58% had less than $25,000.
"For the past decade, Canadian mutual fund investors have consistently expressed strong confidence in the ability of mutual funds to meet their goals, more than any other financial product," said IFIC president and CEO, Joanne De Laurentiis. "This reflects our industry's success in meeting