Canadians are looking to growth-oriented funds to meet their financial goals, according to a new poll. Results from the TD Asset Management Inc. Mutual Funds Investor Poll indicate that approximately 90% of the respondents who plan on investing in mutual funds over the next year plan on investing in growth-oriented funds: balanced (42%), equity (27%) and dividend (21%).
“These results are in line with what we’re seeing in the industry in terms of net flows, as investors move toward balanced and equity funds in light of current market conditions,” said Thomas Dyck, president of TD Mutual Funds.
As investors contemplate their retirement strategy, balanced and equity mutual funds factor prominently into Canadians’ plans. According to the survey, 73% of investors have equity as part of their retirement plan, through either equity funds or balanced solutions. When asked what’s most important when investing in mutual funds, 40% of survey respondents indicated diversification, 27% said they were looking for a safer investment option, and 19% want professional management.
When asked whether they have changed their risk tolerance compared to one year ago, 78% of respondents indicated that they are taking on the same amount of risk or more, with only 22% saying they have shifted to a lower risk tolerance.
“We saw many investors move to more conservative investment products such as fixed income funds as a reaction to the sharp volatility experienced during the recession. With market conditions improving, investors have returned to growth-oriented asset classes to meet their financial goals,” added Dyck.