And most investors value their FA highly study shows
Investors continue to feel most confident in mutual funds to help them reach their financial goals.
A record 89% of investors say mutual funds outperform other financial products and 85% continue to buy their MF investments through a financial advisor.
The annual Canadian Mutual Fund Investor Survey from IFIC and Pollara Strategic Insights also reveals that investors highly value the advice they receive from their financial advisor – and trust them greatly.
More than three quarters of mutual fund investors said they used their advisor in the last year for either investment planning, financial planning, or retirement planning.
FA’s advice is worth the fees
The confidence of investors in their FAs is reflected in their view that their advisor is worth their fees. They say that FAs help them to have better savings and investment habits.
Most (59%) of the investors with an advisor prefer their FA to be paid through mutual fund fees. The rise in this percentage from 53% in 2017 takes it to the highest level since the poll started asking the question in 2013.
Seven out of 10 respondents said they understand the fees charged and 84% of mutual fund investors who have read their statements report that their CRM2 statements “clearly show the rate of return on my account”.
However, the share of those who said statements were “easy to understand” and “provide all the necessary information” slipped.
Little more than half od respondents felt statements “clearly show fees I pay to my advisor’s firm or dealer firm.”
Robo-advisors have little impact
The use of Robo-advisors among mutual fund investors remains very low at just 3%. Even awareness of Robo-advisors is below a quarter of respondents (23%).
