The Investor Experience 2020

Read the research summary on COVID-19 and the investor experience, and the full study results.

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:

Investment Stress

47% of investors are experiencing increased levels of investment stress during the COVID-19 pandemic.

Selling Investments

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%).

Financial Knowledge

23% of investors demonstrated high financial knowledge by correctly answering questions about diversificationDiversification A way of spreading investment risk by by choosing a mix of investments. The idea is that some investments will do well at times when others are not.+ read full definition, inflationInflation A rise in the cost of goods and services over a set period of time. This means a dollar can buy fewer goods over time. In most cases, inflation is measured by the Consumer Price Index.+ read full definition, bondBond A kind of loan you make to the government or a company. They use the money to run their operations. In turn, you get back a set amount of interest once or twice a year. If you hold bonds until the maturity date, you will get all your money back as well. If you sell…+ read full definition prices, compoundingCompounding A way to grow your money faster. Instead of spending the money you make investing, you reinvest it so it can grow.+ read full definition, and numeracy.

Read the research summary on COVID-19 and the investor experience, and the full study results.

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.

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