Canadians happy with their financial advisors

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According to a recent survey conducted for the Investment Funds Institute of Canada (IFIC), most mutual fund investors not only trust their advisors, but also feel that they are better off because of them. In fact, the number of do-it-yourself investors has declined.

 

IFIC released the results of its annual investor perception survey yesterday, and it shows that 95% of mutual fund investors trust their advisor to provide them with sound advice and 88% say they earn higher returns as a result of the advice they receive. What's more, 82% credit their advisor with helping them cultivate better savings and investment habits, and 91% say they get value for the money they pay to their advisor.

 

The survey also revealed that, having purchased funds themselves and managed their own money in the past, some investors are returning to professional advisors.

 

37% would like to compensate their advisors directly

 

"In 2016, the overwhelming majority of mutual funds – nine out of ten - were purchased through a financial advisor. As recently as 2011, this proportion was eight out of ten," reads the report. "Clearly, purchases of mutual funds online or through customer service representatives have never made significant inroads into the market and are currently just one-half of what they were in 2011."

 

While 82% of mutual fund owners say they do not pay a direct fee for their advisor’s services and 54% prefer this sort of arrangement, the study showed that about one in three (37%) would like to compensate their advisors directly. IFIC notes that these results have been consistent since 2013 and do not indicate a major shift in investor preferences.

 

The complete report, which includes more detailed information about the findings and methodology, is available on the IFIC web site.

 

As published in The Insurance & Investment Journal by Andrew Rickard Sept. 16, 2016  01:30 p.m.

 

Four Points Financial Solutions offer clients choice in how they compensate us for our services. To learn more, visit Our Compensation and then call us at 1-866-235-0004 to book your compliemntary financial assessment today.