IFIC and Pollara release 2024 Canadian Mutual Fund and ETF investor survey results

Trust in advisors is high and confidence in investment funds increases

TORONTO, Oct. 22, 2024 /CNW/ - The Investment Funds Institute of Canada (IFIC) and Pollara Strategic Insights today released the results of their annual Canadian Mutual Fund and Exchange-Traded Fund Investor Survey, which has tracked Canadian investor sentiments and behaviour since 2006.

The 2024 survey found that mutual fund and ETF investors have:

• high levels of trust in their financial advisors
• confidence in mutual funds and ETFs to meet financial goals
• growing interest in self-directed investing and cryptocurrency

"The annual Pollara survey provides valuable insights into investors' needs, preferences and concerns about their savings goals. These insights help the industry adapt and make decisions that will truly benefit investors," said Andy Mitchell, President and CEO, IFIC. "It is encouraging to see that investors are highly satisfied with investment funds and place strong value in the advisor relationship."

"The survey tells us how investors are reacting to the changing environment," said Lesli Martin, Senior Vice-President, Pollara Strategic Insights. "It's particularly interesting to see how investors responded during a year of such marketplace volatility."

Key findings

• Investment fund ownership: Investment funds are broadly held, with 61 per cent of Canadian investors owning mutual funds and 24 per cent owning ETFs.
• Trust and satisfaction: Satisfaction with advisors rose from last year's survey, with 94 per cent of investors expressing satisfaction. Ninety-two per cent say they trust their advisors.
• Advisor value: Nearly 90 per cent of investors believe their advisor ensures better returns, helps them stay disciplined during market downturns, and improves their savings habits. Eight in 10 also say that their advisor is worth the fees. Three-quarters of investors use advisors as a source of investing information.
• Confidence in mutual funds and ETFs: Confidence in investment products is higher this year, with 92 per cent of mutual fund investors and 88 per cent of ETF investors confident that their investment funds will help them meet their financial goals. This is particularly important as Canadians increasingly rely on personal savings for retirement.
• Understanding of fees: Most investors express some satisfaction with how dealer/advisor fees are reported on their annual fee statements. However, only 67 per cent of investors feel confident that they understand the fees they pay, whether management expense ratios (MERs) or the fees paid to advisors and dealer firms.
• Self-directed investing: Almost half of investors have done some form of self-directed investing and one-third of ETF investors do so regularly.  
• Cryptocurrency adoption: Cryptocurrency ownership is on the rise, with 25 per cent of ETF investors and 15 per cent of mutual fund investors holding these assets. Confidence in these products has also grown since last year.
• Impact of inflation: Roughly half of mutual fund and ETF investors invested less in 2024 due to inflation, and the same proportion expect to invest less next year. Interest rates played a smaller role in this trend.

The 2024 survey samples included 4,077 mutual fund investors and 1,523 ETF investors.

For a comprehensive look at this year's findings, read the full report at IFIC or Pollara Strategic Insights.

About IFIC
The Investment Funds Institute of Canada is the voice of Canada's investment funds industry. IFIC brings together approximately 150 organizations, including fund managers, dealers, professional and back-office service providers, to strengthen the integrity of the investment funds industry, foster public confidence, and enable investors to achieve good outcomes. By connecting savers to Canada's economy, our industry contributes significantly to Canadian economic growth and job creation.

About Pollara Strategic Insights
Founded in 1980, Pollara Strategic Insights is one of Canada's premier full-service research firms – a collaborative team of senior research veterans who are passionate about conducting research through hands–on creativity and customized solutions. Taking full advantage of their comprehensive toolbox of industry-leading quantitative and qualitative methodologies and analytical techniques, Pollara provides research-based strategic advice to a wide array of clients across all sectors on a local, national, and global scale.

SOURCE The Investment Funds Institute of Canada

For more information: Christine Harminc, Senior Manager, Communications and Public Affairs, [email protected], 416-309-2313; Lesli Martin, Senior Vice President, Public Affairs, Pollara Strategic Insights, [email protected], 416-707-9770