RRSP season no longer exists

While still important, over the course of the past decade, investment sales generated during the first quarter of the year have become less dominant in the context of yearly intakes.

A number of factors have contributed to this trend, including a push from financial services providers to make investing a year round priority.

The trend is closely linked to the rise of solutions that have contributed to shifting investor priorities toward a greater emphasis on planning and continual commitment.

Pre-authorized contribution plans and dollar-cost averaging strategies (including funds launched specifically with this objective) are reinforcing this trend.

In addition to the lessening importance of the first quarter over time, the post-2008 investment era has witnessed a more erratic seasonality pattern.

Market instability and ensuing investor anxiety may be factors, as both sales and redemptions have been more sensitive to market gyrations. The availability of a significant pool of liquid money “on the sidelines” that may or may not find its way into investments may also be contributing to less typical—and predictable—seasonal distributions.

At the end of 2011, this liquidity buffer was upward of $1 trillion, well above the size of the investment funds industry.

Read about RRSP strategies

Dealing with RRSP, RRIF losses

Beyond the RRSP deadline

Help clients access RRSP funds and save tax

Investor Economics Insight produces Insight Monthly Update. This information is from the May 2012 Monthly Update.