Knowledge and/or fear of losing money are leading hold-backs for less confident investors
Investors who don't feel comfortable investing their own money most frequently point to a lack of knowledge (65 per cent) and/or fear of losing money (57 per cent) as reasons for this sentiment. But knowledge gaps aren't just limited to non-investors—four in ten current investors aren't sure what ETF stands for (38 per cent) or don't know what dollar cost averaging is (42 per cent).
"Knowledge is power in investing, but the good news is that you don't need to know everything to get started. In most cases, investing prudently and early is more important than having a perfect plan," said
And for most Canadians, the importance of knowledge is clear—four in five said knowing how to invest is important (79 per cent) and believe having more information or advice regarding current investment trends would help them build confidence (79 per cent). Nearly three quarters of Canadians (73 per cent) admit they'd like to learn more.
"With living costs rising sharply in recent years, it's more important than ever that we bridge those educational gaps for Canadians," said Marjanovic. "The pressures on budgets are real for many Canadians, but there's also a long term cost associated with not investing and then trying to make up that gap later in life."
For those looking to learn more, a few considerations from Investor's Edge include:
- Starting early – Compound interest benefits those who invest early, and a small amount invested when you're young may earn much more in interest than many times that amount invested when you're older.
- Using the right tools – Quality research can make a big impact. CIBC Investor's Edge provides proprietary research and Morningstar Equity Research Reports to help clients make informed trades.
- Building in diversity – A diversified portfolio is one that has a mix of assets and exposes you to minimal risk while still earning a return—exchange traded funds (ETFs) may be an effective and fee-conscious way to invest in a broad range of equities without having to manage a full portfolio.
- Growing your knowledge – Books, websites, and online communities can all be great sources of investing info, plus CIBC Investor's Edge has an investing 101 page and a theme-based strategy builder to help clients get started.
To learn more visit www.investorsedge.cibc.com
About CIBC Investor's Edge
CIBC Investor's Edge is a leader in self-directed investing. Investor's Edge provides an intuitive mobile trading platform, easy to use tools, extensive research, and a growing library of educational materials to help investors chart their own course. Backed by one of
About the study
These are some of the findings of an Ipsos poll conducted between
SOURCE CIBC
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