Many Canadians’ Financial Strategies Ignore Investing

Knowledge and/or fear of losing money are the main obstacles for less confident investors

TORONTO, May 15, 2024 /PRNewswire/ — Only about half of Canadians (48%) say they invest money every year, according to new research from Investor’s Edge, the direct investing division of CIBC. A small majority (56 percent) say they feel comfortable investing their own money, a figure that rises to three-quarters (75 percent) among investors, but only half (51 percent) consider themselves knowledgeable about investing ( 68 percent). , among investors).

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Investors who do not feel comfortable investing their own money most often point to a lack of knowledge (65 percent) and/or fear of losing money (57 percent) as reasons for this feeling. But knowledge gaps aren’t just limited to non-investors – four in ten current investors aren’t sure what ETF means (38 percent) or don’t know what dollar-cost averaging is (42 percent).

“Knowledge is power to invest, but the good news is that you don’t need to know everything to get started. In most cases, investing prudently and upfront 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 incentive potential investors need to start making their money work for them.”

And for most Canadians, the importance of knowledge is clear – four in five say that knowing how to invest is important (79 percent) and believe that having more information or advice on current investment trends would help them boost confidence (79 percent). Nearly three-quarters of Canadians (73%) admit they would like to learn more.

“With the cost of living rising sharply in recent years, it is more important than ever that we close these educational gaps for Canadians,” said Marjanovic. “Budget pressures are real for many Canadians, but there is also a long-term cost associated with not investing and trying to make up for that gap later in life.”

For those who want to know more, some Investor’s Edge considerations include:

• Start early – Compound interest benefits those who invest early, and a small amount invested when you are young can yield much more interest than many times the amount invested when you are 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.

• Build on diversity – A diversified portfolio is one that has a mix of assets and exposes you to minimal risk while earning a return – exchange-traded funds (ETFs) can be an effective and conscious way to invest across a broad range of stocks without having to manage an entire portfolio.

• Increasing your knowledge – Books, websites and online communities can be great sources of information about investing, and CIBC Investor’s Edge has a investing 101 page and a theme-based strategy builder to help customers get started.

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To find out more visit www.investorsedge.cibc.com

About CIBC Investor’s Edge
CIBC Investor’s Edge is the leader in self-directed investing. Investor’s Edge offers 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 pioneering 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 from an Ipsos survey conducted between February 2 and 7, 2024 on behalf of CIBC. For this research, a sample of 1,500 Canadians over the age of 18 were interviewed online, of which 813 qualify as investors. Weighting was used to balance demographics, ensure that the composition of the sample reflects that of the adult population according to Census data, and provide results that are intended to approximate the sample universe. The accuracy of Ipsos online polls is measured using a credibility interval. In this case, the polling accuracy is ±4.2 percentage points, 19 times out of 20, if all Canadian investors had been polled. The credibility gap will be wider among subsets of the population (in this case, investors). A second online survey conducted March 21-22, 2024, and asked general investing questions to a representative sample of 1,001 Canadians over the age of 18. Weighting was used to balance demographics, ensure that the composition of the sample reflects that of the adult population according to Census data, and provide results that are intended to approximate the sample universe. The credibility interval for this second survey was ±3.8 percentage points, 19 times out of 20, if all Canadians aged 18 and over had been surveyed. All sample surveys and polls may be subject to other sources of error, including, but not limited to, coverage errors and measurement errors.

SOURCE CIBC

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