What the findings could mean for your investments
August 19, 2020
TORONTO – A new study by the Ontario Securities Commission (OSC) Investor Office found that the COVID-19 pandemic has increased stress levels when thinking about investments for 47% of Canadian retail investors.
The study was conducted as part of the OSC’s activities to improve investor protection and the investor experience. This study covered several topics, including:
47% of investors are experiencing increased levels of investment stress during the COVID-19 pandemic.
85% of investors had not sold any investments during the first months of the pandemic.
Working with an Advisor
81% of investors gave a favourable rating when asked about their advisor’s financial advice during the COVID-19 pandemic.
Difficulty in Understanding Investments
68% of investors experience at least one challenge to understanding their investments. When asked to identify why it is challenging to understand their investments, the most common challenge was “I need more financial knowledge” (30%) followed by “Financial concepts are confusing” (22%).
23% of investors demonstrated high financial knowledge by correctly answering questions about diversification, inflation, bond prices, compounding, and numeracy.
About the research: The OSC Investor Office engaged Leger Marketing Inc. to conduct a survey to, among other things, help us understand the level of financial literacy among Canadian investors and the investor experience during COVID-19. The survey was conducted online among a representative sample of 1,942 Canadians, 18 years of age or older, between March 30 and April 11, 2020. The results were weighted by age, gender and region using the latest Statistics Canada Census data to reflect the actual demographic composition of the adult population aged 18 and older residing in Canada.