Investors demanding stability, security over gains

More and more, Canadians are considering safer investment options. On-going global market volatility and a host of other factors which raise the spectre of the 2008 downturn have spooked investors, this according to a BMO survey.

The survey found that 72% of Canadian investors are willing to scratch potential gains for reliable investments. 36% are more open to including guaranteed investments, such as Guaranteed Investment Certificates (GICs) or bonds and women are more likely than men to play it safe. 82% of those over 55 appreciate security over gains and Quebecors are willing to forego a percentage of growth for reliable investments compared to those in Alberta (82% vs. 66%).

“One way for investors to help insulate their investments from the ups and downs of the markets is by boosting the percentage of fixed income investments in their portfolios, such as GICs, while increasing their cash savings where possible over the short term,” said Domenic Gallippi, Head of Term Investment Products, BMO Bank of Montreal.

Paul Taylor, Chief Investment Officer, BMO Harris Private Banking, noted that not all investment products are created equal and it is important for investors to examine their options and diversify their portfolio to balance risk and align with their life stage and overall financial goals.

“While a savvy investor who’s more comfortable with risk can certainly experience potentially higher gains playing the markets directly, a market-linked GIC product allows risk-averse investors exposure to potentially higher gains while protecting their principal investment,” said Taylor.

The survey was completed on-line from September 6th to September 8th, 2011 using Leger Marketing’s online panel, LegerWeb, with a sample of 1506 Canadians 18 years of age or older. A probability sample of the same size would yield a margin of error of 2.5% 19 times out of 20.