November 21, 2024
Canadian investors in 2024 are more confident, more broke: Survey #CanadaFinance

Canadian investors in 2024 are more confident, more broke: Survey #CanadaFinance

CashNews.co

Canadians are more confident in various investment options this year, even as economic conditions have seemingly led to fewer people holding investments, a survey from the Investment Funds Institute of Canada (IFIC) says.

The survey, conducted by Pollara for IFIC, offers considerable insight into the investment preferences of Canadians. It gives a sense of how portfolios have changed, suggests a growing acceptance of cryptocurrency, underlines (yet again) the impact of inflation and indicates some sharp differences in the mindset of investors who lean towards mutual funds and those who prefer exchange-traded funds (ETFs).

With 18 previous years of analysis, the survey also provides a long view on investment trends.

Here are the highlights.

The survey found 64 per cent of Canadians hold some kind of investments, down from 67 per cent last year.

“I think the economic environment could have affected people’s ability to put money aside for the future, as opposed to just paying for ongoing daily expenses,” Ian Bragg, IFIC’s vice president of research and statistics, said in a media call about the survey.

“If you look at the people who are new to investing, like people who are starting out, people who are younger, have less disposable income,” added Pollara senior vice president Lesli Martin. “It makes sense that perhaps holding investments has gone down because those people are going to be the ones that are really impacted by those problems.”

After dropping in 2022, confidence that “investments will meet financial goals” rose in 2023 and again in 2024. This year, confidence increased in all categories, with stocks, bonds, and mutual funds having the confidence of 70 per cent or more of investors.

“[I]n 2022 there was decline in confidence among mutual fund investors, particularly, and this was for mutual funds, but it was also pretty much across the board,” said Martin. “There was just a drop in confidence of any investment products. In 2023 that bounced back, we had a bit of a rebound … And this year we saw even a stronger confidence, so that that feeling of distrust was very short lived.”

Mutual funds remain the most common investment

Among the 64 per cent of Canadians with investments, 61 per cent have mutual funds, down from 64 per cent in 2023. The proportion owning stocks also declined, from 49 per cent to 47 per cent. 24 per cent of investors have ETFs, the same as last year.

Cryptocurrency gained ground, with 18 per cent owning cryptocurrency assets, up from 14 per cent in 2023.

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