Nearly all Canadian investors (97%) feel anxiety when thinking about their investments, finds the BMO InvestorLine Psychology of Investing Study.
When thinking of investing and making investment decisions, Canadians are most worried about: fear of financial loss (47% overall; 43% for men and 50% for women); not receiving a “good” return on their investments (40% overall; 39% for men and 41% for women); how market volatility will affect their investments (33% overall; 29% for men and 37% for women), and selecting the “right” investments (32% overall; 32% for men and 31% for women).
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“Investing is personal so it’s not surprising to see that a majority of Canadians are not only financially but emotionally involved in their investments,” says Julie Barker-Merz, president of BMO InvestorLine. “Given recent market volatility, fear of financial loss is an understandable concern.”
Along with investment anxiety, the study reveals Canadians are generally confused about investing (90%)—only 10% overall (12% for men and 8% for women) say nothing puzzles them about investing.
The top areas of investing that created the most confusion are: finding an investment that will yield the best return with minimal risk (38%; 37% for men and 39% for women); which investment option will best suit their risk tolerance and life stage (25% overall; 20% for men and 30% for women); and knowing when to change their investment mix (23% for both men and women) and deciding with whom to entrust their money (23% overall; 25% for men and 21% for women).
“The confusion that exists among 90% of Canadian investors likely contributes to their investment anxiety,” she adds.
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