managing their investments, one-third have no clue what specific investments
they hold within their portfolios and only half have a financial plan, a new
study has found.
According to BMO Nesbitt Burn’s Savviest Investor Index, 84% of investors say
they’re doing a good job of investing; but only 56% know their investment
profile which identifies their financial goals and risk tolerance.
“While it’s encouraging that Canadians are optimistic about their ability to
manage their investments, it’s concerning that such a significant number don’t
have a written financial plan and are unclear about what investments they hold,”
Bill Brown, senior vice-president and managing director of BMO Nesbitt Burns,
said in a statement. “The key to achieving your long-term financial goals is
creating a financial plan that starts today.”
Investors know the most about guaranteed investment certificates or GICs
(58%) and mutual funds (55%); they are the least knowledgeable about
exchange-traded funds or ETFs (19%).
Most investors understand how their investments are impacted by interest
rates (80%) and currency rates (66%). They are least knowledgeable about how
stock market fluctuations (54%) and corporate earnings (38%) impact their
Seniors are the most likely to know what specific investments they hold
BMO’s bi-annual study also ranked the provinces: Who are the savviest
investors in all the land? So which investors have financial plans, know their
investment profiles, pay attention to market trends and understand what impacts
It’s British Columbians. They beat out Alberta which held the top spot in
2011, then the Prairies, Ontario, Quebec and finally Atlantic Canada.
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