Knowledge and/or fear of losing money are
leading hold-backs for less confident investors
TORONTO, May 15, 2024
/CNW/ - Only about half of Canadians (48 per cent) say they're
investing money each year according to a new poll from Investor's
Edge, the direct investing division of CIBC. A small majority (56
per cent) say they are comfortable investing their own money, a
figure which rises to three-quarters (75 per cent) among investors,
but only half (51 per cent) consider themselves knowledgeable about
investing (68 per cent, among investors).
Only about half of Canadians say they're
investing money each year according to a new poll from Investor's
Edge:Sondage de Pro-Investisseurs
Investors who don't feel comfortable investing their own money
most frequently point to a lack of knowledge (65 per cent) and/or
fear of losing money (57 per cent) as reasons for this sentiment.
But knowledge gaps aren't just limited to non-investors—four in ten
current investors aren't sure what ETF stands for (38 per cent) or
don't know what dollar cost averaging is (42 per cent).
"Knowledge is power in investing, but the good news is that you
don't need to know everything to get started. In most cases,
investing prudently and early is more important than having a
perfect plan," said Luka Marjanovic,
Managing Director and Head, CIBC Investor's Edge. "Having the right
tools can be the nudge prospective investors need to start making
their money work for them."
And for most Canadians, the importance of knowledge is
clear—four in five said knowing how to invest is important (79 per
cent) and believe having more information or advice regarding
current investment trends would help them build confidence (79 per
cent). Nearly three quarters of Canadians (73 per cent) admit
they'd like to learn more.
"With living costs rising sharply in recent years, it's more
important than ever that we bridge those educational gaps for
Canadians," said Marjanovic. "The pressures on budgets are real for
many Canadians, but there's also a long term cost associated with
not investing and then trying to make up that gap later in
life."
For those looking to learn more, a few considerations from
Investor's Edge include:
- Starting early – Compound interest benefits those who invest
early, and a small amount invested when you're young may earn much
more in interest than many times that amount invested when you're
older.
- Using the right tools – Quality research can make a big impact.
CIBC Investor's Edge provides proprietary research and Morningstar
Equity Research Reports to help clients make informed trades.
- Building in diversity – A diversified portfolio is one that has
a mix of assets and exposes you to minimal risk while still earning
a return—exchange traded funds (ETFs) may be an effective and
fee-conscious way to invest in a broad range of equities without
having to manage a full portfolio.
- Growing your knowledge – Books, websites, and online
communities can all be great sources of investing info, plus CIBC
Investor's Edge has an investing 101 page and a theme-based
strategy builder to help clients get started.
To learn more visit www.investorsedge.cibc.com
About CIBC Investor's Edge
CIBC Investor's Edge is a
leader in self-directed investing. Investor's Edge provides an
intuitive mobile trading platform, easy to use tools, extensive
research, and a growing library of educational materials to help
investors chart their own course. Backed by one of Canada's largest banks and the forerunner in
Canadian equity trading with CIBC Capital Markets, Investor's Edge
helps clients bring their ambitions to life.
About the study
These are some of the findings of an
Ipsos poll conducted between February 2 to
7, 2024 on behalf of CIBC. For this survey, a sample of
1,500 Canadians aged 18+ were interviewed online, of which 813
qualify as investors. Weighting was employed to balance
demographics to ensure that the sample's composition reflects that
of the adult population according to Census data and to provide
results intended to approximate the sample universe. The precision
of Ipsos online polls is measured using a credibility interval. In
this case, the poll is accurate to within ±4.2percentage points, 19
times out of 20, had all Canadian investors been polled. The
credibility interval will be wider among subsets of the population
(in this case, investors). A second online poll fielded
between March 21 and 22, 2024 and
asked a representative sample of 1,001 Canadians aged 18+ general
questions about investing. Weighting was employed to balance
demographics to ensure that the sample's composition reflects that
of the adult population according to Census data and to provide
results intended to approximate the sample universe. The
credibility interval for this second poll was ±3.8 percentage
points, 19 times out of 20, had all Canadians aged 18+ been polled.
All sample surveys and polls may be subject to other sources of
error, including, but not limited to coverage error, and
measurement error.
SOURCE CIBC