Why Canadians favour mutual funds
(NC) The mutual funds industry has grown from investing $5 billion for Canadians in 1982 to investing around a trillion dollars today. That's the equivalent of about $28,600 for each man, woman and child in Canada.
Why are mutual funds so popular with Canadians?
The overwhelming majority of investors trust their advisors to give them sound advice and believe that they obtain better returns than they would if investing on their own.
Recent independent research confirms that 81% of Canadian mutual fund investors say funds will help them meet their financial goals. Fewer express confidence in GICs (65%), stocks (61%) and bonds (57%).
Mutual funds offer unique benefits:
• A mutual fund account can be started for as little as $25/month.
• There are 45 mutual fund categories covering an enormous range of asset classes, many of which wouldn't otherwise be available to the average investor.
• Mutual funds save investors the time and energy required to build their own portfolios.
• Funds are managed by some of Canada's most talented and respected investment professionals.
• There are many ways to purchase mutual funds, making them highly accessible.
• In most cases, the cost of advice is built into the product, so that there are no additional fees.
The industry has continually evolved to protect investor interests. Today, mutual funds are highly regulated and more transparent than many other managed investment products.
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