Annual survey finds fewer investors are using advisors

The Investment Funds Institute of Canada (IFIC) and Pollara Strategic Insights have announced the publication of the most recent investor survey conducted for IFIC, the Canadian Mutual Fund and Exchange-Traded Fund Investor Survey.

In it, the report’s authors say responses from 4,121 surveys conducted in June 2023, indicate that satisfaction with advisors remains very high for both mutual fund investors and exchange-traded fund (ETF) investors with 92 and 91 per cent respectively giving high marks. Despite this, they say the use of advisors continues to decrease slowly. Among mutual fund investors, the majority report having done some self-directed investing, with two-fifths reporting that they intend to make an investment purchase without an advisor in the next year.

ETF investors were even less inclined to use advisory services. “These investors are less likely to have made their last purchase through an advisor and depend on many different sources of information. They are more likely than mutual fund investors to turn to social media for advice, with only one-third being sure this advice is coming from professionals. ETF investors are more likely to make self-directed purchases without any advice.” 

Despite this, across both categories, investors report having a slightly higher perception of advisor value and the value of advice when compared to past results. 

Investor confidence is also measured in the report – 90 per cent of mutual fund investors and 91 per cent of ETF investors said they were somewhat confident, confident or completely confident in their investment products.

The report further found that the vast majority from both groups say they prefer to receive all of their investment statements electronically. They report satisfaction with annual fee and performance statements and consider all parts of them to be useful and important. “However, half believe these statements contain all the fees they pay on their investments.” 

In addition to investor confidence, the value of advice, sources of financial information, understanding of and satisfaction with statements and document delivery preferences, the 18th annual report also delves into responsible investing (RI) sentiments (more are knowledgeable about RI than they were last year) and the impact of inflation. Although this last item matters less to investors this year than it did last year, 44 per cent of mutual fund investors and 39 per cent of ETF investors still say they are investing less than usual, due to inflation.