- TD Asset Management Mutual Funds Survey reveals investors are increasingly confident about equities -
TORONTO, May 18 /CNW/ - Canadians are looking to growth-oriented funds to meet their financial goals, finds the TD Asset Management Inc. Mutual Funds Investor Poll. According to the survey, approximately 90% of the respondents who plan on investing in mutual funds over the next year plan on investing in growth-oriented mutual funds (balanced 42%, equity 27% and dividend funds 21%).
"These results are in line with what we're seeing in the industry in terms of net flows, as investors move towards balanced and equity funds in light of current market conditions," says Thomas Dyck, President, 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 either through equity funds or balanced solutions.
"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," adds Dyck.
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.
"Investors understand the need for growth-oriented funds in their portfolios and they are looking for high quality investments," says Dyck. "An equity-based or balanced mutual fund that follows a disciplined investment approach and creates long-term value is a good way to gain that exposure and balance risk."
When asked if investors have changed their risk tolerance compared to one year ago, 78% indicated they are taking on the same amount of risk or more, with only 22% saying they have shifted to a lower risk tolerance. Thirty percent of investors who say they are taking on less risk are in the 55+ age group.
According to the survey, 81% of respondents review their portfolios more than once per year. "Having a solid plan to meet your financial goals is key to success," says Dyck. "Given the current market environment, now is the right time for investors to meet with advisors to review their financial plans and ensure they have the right balance of high-quality investments to meet their individual goals."
About the TD Asset Management Mutual Funds Survey
From April 13 to April 14, 2011, an online survey was conducted among a
randomly selected, representative sample of 1,006 Canadian adults with
a household income of $50,000 or higher that own mutual funds, and who
are Angus Reid Forum panel members. The full dataset has been
statistically weighted to ensure a representative sample. The margin of
error is ±3.1%, 19 times out of 20. Discrepancies in or between totals
are due to rounding.
About TD Mutual Funds
Under the TD Mutual Funds name, TD Asset Management Inc. (TDAM) provides
a diverse range of over 70 mutual funds and 25 professionally managed
portfolios. TDAM manages retail mutual fund assets on behalf of more
than 1.4 million investors and TD Mutual Funds is one of the most
broadly diversified fund families in Canada. Funds are available at TD
Canada Trust branches (through TD Investment Services Inc.
representatives), TD Waterhouse Discount Brokerage, Financial Planning
and Private Investment Advice, as well as leading investment dealers,
independent brokers, advisors and financial planners. As of April 30,
2011, TDAM was the fourth largest mutual fund company in Canada, with
over $60 billion invested in TD Mutual Funds.