TORONTO, Jan. 15, 2013 /CNW/ - More than half (51%) of Canadians who own
mutual funds agree that choosing the right fund is neither simple nor
straightforward, yet most spend more time planning luxuries instead of
annual investments. A recent ING DIRECT survey revealed Canadian mutual
fund investors spend, on average, 3.4 hours a year planning their
mutual fund investments. By comparison, they spend more time planning a
major technology purchase such as a smartphone, television or computer
(5 hours), a vacation (6.6 hours) or a car purchase/lease (9.2 hours).
"Though not surprising, it's discouraging to see that Canadians are
prioritizing vacation planning and car purchases over their mutual fund
investment decisions," said Silvio Stroescu, head of mutual funds at
ING DIRECT. "Mutual funds are the most popular investments in
retirement portfolios, so to spend a little more time researching your
options is worthwhile and can lead to significant savings in the long
Whether Canadians lack interest in researching investments or have no
idea where to start, it's clear they could use some additional research
time when it comes to investing.
An overwhelming majority (73%) of mutual fund investors say they turn to
a banker or financial advisor when looking for advice in choosing
mutual funds. Others polled say they turn to family (7%), media (3%) or
friends (2%) while only 1 in 10 say they don't seek advice from anyone.
Some Canadians admit that factors like not having enough time to
educate oneself (15%), having too many choices (14%) or feeling like
investing requires too many steps (9%) were among the obstacles
investors faced when deciding on which fund to choose.
The survey also found Canadian investors still don't know the basic cost
of holding their funds. Half of mutual fund investors said they felt a
MER of 1% or less was fair, yet 50% were unsure of the annual
management expense they are paying for mutual funds.
"The perceived complexity around finding the right mutual funds often
means Canadians are leaving their investment choices to other people,"
said Stroescu. "Outsourcing investment decisions is the main reason why
Canadians pay some of the highest mutual funds fees in the world.
Rather than delegating these decisions, consider investing directly in
a total portfolio solution that takes the guesswork out of investing
while saving you both money and time."
ING DIRECT Streetwise Portfolios are diversified investments that use an
index-based strategy so investors get exposure to a variety of stocks
and bonds, and disciplined rebalancing is already built in. Investors
get a portfolio that's tailored to their financial goals and risk
profile at a fair cost.
About the survey
On December 14, 2012, an online survey was conducted among a sample of
1,008 Canadian adults who are Angus Reid Forum panel members. The
margin of error — which measures sampling variability — is +/- 3.08%,
19 times out of 20. The sample was balanced by age, gender and region
according to the most recent census data. Discrepancies in or between
totals are due to rounding.
About ING DIRECT Streetwise Portfolios
ING DIRECT Streetwise Portfolios are exclusively offered by ING DIRECT
Asset Management Limited. ING Direct Funds Limited is the principal
distributor of ING DIRECT Streetwise Portfolios. ING Direct Funds
Limited offers mutual funds across Canada. ING Direct Funds Limited
and ING Direct Asset Management Limited are wholly-owned subsidiaries
of ING Bank of Canada. Commissions, trailing commissions, management
fees and expenses all may be associated with mutual fund investments.
Please read the prospectus before investing. Mutual funds are not
guaranteed, their values change frequently and past performance may not
be repeated. Mutual funds are not insured by the Canada Deposit
Insurance Corporation or any other government deposit insurer, and are
not guaranteed by ING Bank of Canada, or any other Canadian financial
™ Streetwise Portfolios is a trademark of ING Bank of Canada, used under
SOURCE: ING DIRECT
For further information:
or to arrange an interview, please contact:
416-497-5157 ext. 4453