Canadians looking for guaranteed investments

Canadians looking for guaranteed investments, even if return is small

Canadians have become more inclined in recent years to put money in investments that guarantee a return, even if it is small, as opposed to risky investments with higher upside potential, a new survey shows.

The survey released by Bank of Montreal on Thursday showed 66 per cent of respondents more open to guaranteed-return investments, such as GICs (guaranteed investment certificates), than they were two years ago.

Interest in such types of conservative investments was proportionally higher among certain groups, such as those in Ontario and the Prairies, people 55 or older and individuals with incomes of $60,000 a year or more.

The survey also found 70 per cent were willing to give up a certain percentage of investment earnings in exchange of a 100 per cent guarantee on their initial contribution.

“The stats clearly underscore the fact that Canadians are looking for ways to protect and keep more of their money,” said Martin Nel, BMO’s vice-president of lending and investment Products.

Despite the relatively positive sentiment on stock markets lately —Canadian and U.S. indexes have essentially gained back all that was lost in the market meltdown of 2008-09 —61 per cent of respondents in this survey said they are worried about the safety of their investments.

The results were based on online surveys, carried out by Leger Marketing, with 1,513 Canadian between Oct. 25 and 27. No margin of error was given.

James Chung

Vancouver Lifestyle, Cool Tech & Travel Adventure. Email: [email protected]

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