TORONTO, Sept. 30, 2013 /CNW/ - For the eighth year in a row, research conducted by Pollara on behalf of The Investment Funds Institute of Canada (IFIC) shows mutual funds lead the way when it comes to investor confidence, and that investors are looking for choice when it comes to paying for advice.
The 8th annual landscape survey asked mutual fund owners to rank mutual funds, GICs, stocks, bonds and ETFs according to how much confidence they have in each product to help them achieve their financial goals. Mutual funds achieved an 81% confidence level compared with 65% for GICs, 61% for bonds, 57% for stocks, and 33% for ETFs.
Fund investors also continue to express a strong preference for receiving information about potential fund purchases from their advisor, whether directly (83%), or through their newsletters (63%), or their websites (55%).
"Canadian investors also demonstrate high levels of trust in their advisors, said IFIC president and CEO, Joanne De Laurentiis. "Ninety four percent of Canadian mutual fund investors surveyed agreed that they trust their advisors to give them sound advice and 90% agreed that they obtain better returns than they would if investing on their own."
For the first time, this year's survey also includes data about mutual fund investors' preferences when it comes to paying for advice. The survey found 51% support the current dominant Canadian model of embedded fees, while 41% would prefer a direct payment to the advisor. However, when asked about the likelihood of staying with their advisor if direct payment resulted in a higher cost to the investor, only 16% indicated they would be very likely or certain to continue.
"Research conducted in the U.S. shows that the shift to direct fee payment in that market has resulted in higher fees for many investors," said Ms. De Laurentiis. Given what we know about the benefits of advice, we need to take note of these consequences and proceed cautiously when considering regulatory policy."
The complete 2013 Pollara Survey is available on the IFIC website.
The Investment Funds Institute of Canada is the voice of Canada's investment funds industry. IFIC brings together 150 organizations, including fund managers and distributors and industry service organizations, to foster a strong, stable investment sector where investors can realize their financial goals. By connecting Canada's savers to Canada's economy, our industry contributes significantly to Canadian economic growth and job creation. The organization is proud to have served Canada's mutual fund industry and its investors for more than 50 years.
SOURCE: Investment Funds Institute of Canada
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