Download The Canadian Money State of Mind Risk Survey 2014

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A recent Investor Education Fund survey*
explored behavioural and economic factors that
affect Canadians’ risk-taking when investing.
Canadians invest based on:
Careful analysis
1 in 10
Analysis and gut feelings
Gut feelings
consider themselves
high-risk investors
60%
23%
6 in 10
17%
consider themselves
medium-risk investors
Canadians who invested based on emotion
and then regretted their decision:
Once or twice 40%
Once or twice every few years
Many times 4%
3 in 10
12%
-20%
consider themselves
low-risk investors
GICs
Stock
If given a choice between stocks and GICs, during
times of greater uncertainty, Canadian investors:
1 in 3
Canadian investors have lost
at least 20% in one year
Balance stocks and GICs
Prefer stocks 29%
Prefer GICs 32%
51%
Top 5
of Canadian investors took
no action after losing at least
20% in one year
Some of the actions
Canadian investors took:
Fled to safety 36%
Cut spending 15%
Invested more 13%
Fired and/or hired advisers
39%
worries of Canadian investors
TWX (THE WORRY INDEX)
1. INFLATION 62%
2. LOW EARNINGS FOR RETIREMENT  57%
3. LOSS  56%
4. GLOBAL EVENTS  54%
22%
* Investor Education Fund. “Investor Risk, Behaviour & Beliefs.” January 2014.
5. STOCK MARKET DOWNTURN  53%
Text Alternative Version
The Canadian Money State of Mind Risk Survey 2014
A recent Investor Education Fund survey* explored behavioural and economic factors
that affect Canadians’ risk-taking when investing.
60% of Canadians invest based on careful analysis
Top 5 worries of Canadian investors:
23% of Canadians invest based on both analysis
and gut feelings
• 62% of Canadian investors are worried that inflation
will threaten their long-term financial plans
17% of Canadians invest based on gut feelings
• 57% of Canadian investors are worried about not
earning enough for retirement
40% of Canadians regretted an investment based
on emotion once or twice
• 56% of Canadian investors are worried about losing
money on investments
12% of Canadians regretted an investment based
on emotion once or twice every few years
• 54% of Canadian investors are worried that global
events will threaten their investments
4% of Canadians regretted an investment based
on emotion many times
• 53% of Canadian investors are worried about lasting
stock market downturn
1 in 3 Canadian investors have lost at least 20%
in one year
51% of Canadian investors took no action
after losing at least 20% in one year
Some of the actions Canadian investors took:
•
•
•
•
Fled to safety: 36%
Cut spending: 15%
Invested more: 13%
Fired and/or hired advisers: 22%
1 in 10 consider themselves high-risk investors
6 in 10 consider themselves medium-risk investors
3 in 10 consider themselves low-risk investors
If given a choice between stocks and GICs, during times
of greater uncertainty, Canadian investors:
• Balance stocks and GICs: 39%
• Prefer stocks: 29%
• Prefer GICs: 32%
*Investor Education Fund. “Investor Risk, Behaviour & Beliefs.” January 2014.