Canadians have accumulated savings of one trillion dollars in mutual funds – marking the first time in their 82-year history in Canada that funds have topped this significant milestone, according to The Investment Funds Institute of Canada (IFIC).
Assets under management (AUM) for the mutual funds industry reached US$1.01 trillion as of January 31, 2014, an increase of US$140.1 billion or 16.1% over the previous 12 months.
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Joanne De Laurentiis, president and CEO, IFIC, said: "The importance of this milestone is the increase in wealth it represents for the roughly 4.6 million Canadian households that choose to save for their financial goals through mutual funds. Mutual funds have grown tenfold in value since 1990 and are a cornerstone of Canadians’ retirement savings. Of the $986 billion increase since 1990, approximately 54% was generated by net sales, while 46% is the increase in the total value (market effect) of those savings."
IFIC chair Brian Peters, president and CEO of MD Physician Services Inc., said, "The industry wishes to thank investors for their continued trust – a trust we are committed to honour and reflect in all of our dealings with them. We are proud of our legacy of helping individual Canadians to plan and save for a secure retirement and we are committed to evolving products and advisory services to meet the ever-changing needs of Canadian investors."
Canadians’ strong interest in mutual funds stems from several factors. Fund products provide innovative solutions built on easy, convenient access to a wide variety of products designed by highly trained investment professionals, while protecting investor interests.
A mutual fund account can be started for as little as US$25/month, providing instant access to capital markets in over 40 countries. Mutual funds save investors the time and energy required to build their own portfolios.
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By GlobalDataDe Laurentiis added: "Investors are to be congratulated for the progress they have made toward creating a more secure financial future for themselves and their families. By adopting regular savings habits, they are seeing their savings grow."
Mutual funds are available through a variety of channels, with advisors being the most popular way for Canadians to purchase mutual funds. Advisors provide convenient access, counsel and guidance to help investors grow their financial assets.
De Laurentiis added: "Advisors can take pride in the significant role they have played in helping Canadians achieve their financial goals. Research shows that advised households are twice as likely to save regularly for retirement across all age groups."
