REPEAT-BMO Study: Mutual Funds Are Backbone of Canadians' RRSPs

REPEAT-BMO Study: Mutual Funds Are Backbone of Canadians' RRSPs 
- Seventy-two per cent of Canadian RRSP holders say their portfolio
includes mutual funds  
- Mutual funds comprise almost a third of total RRSP holdings  
- Canadians cite professional management and ability to diversify as
top reasons for choosing mutual funds  
- Investors currently favour income-generating mutual funds 
TORONTO, ONTARIO -- (Marketwire) -- 02/21/13 -- Despite the wide
range of investment options currently available to Canadians, a study
issued today by BMO Financial Group has found that mutual funds
remain the core investment choice for Registered Retirement Savings
Plans (RRSPs). According to the study, 72 per cent of Canadians with
RRSPs report that they hold mutual funds within their RRSP, and that
mutual funds account for almost a third (31 per cent) of all holdings
held in RRSPs. 
In addition to mutual funds, the study revealed that Canadians are
building their RRSPs with a variety of other investments including
Guaranteed Investment Certificates (GICs) (21 per cent), cash (20 per
cent), stocks (11 per cent), bonds (nine per cent) and Exchange
Traded Funds (ETFs) (four per cent). 
"Mutual funds remain a popular investment option for the average
Canadian investor because, among other benefits, they offer immediate
diversification," said Serge Pepin, Vice President, Investment
Strategy, BMO Asset Management Inc. "To ensure investors choose the
funds that best suit their needs, an investment professional can not
only help navigate the wide array of mutual fund options available,
but also provide financial planning and risk tolerance assessment
According to the study, Canadians invest in mutual funds for several
reasons, including: 

--  They are professionally managed (30 per cent)  
--  They invest in a variety of companies/holdings (28 per cent) 
--  They have strong growth potential (26 per cent) 
--  There is a wide variety from which to choose (22 per cent) 

What types of mutual funds do Canadians prefer?  
When asked about what type of mutual fund in which they would like to
invest (whether inside or out of an RRSP), 81 per cent reported they
would favour income-generating funds.  
"As Canadian Boomers begin to retire in greater numbers, it's natural
that many would be looking to generate income from their investments,
including mutual funds," said Mr. Pepin. He noted that BMO
Investments Inc. offers a number of income-generating options in its
mutual fund lineup. 
The second choice for the type of mutual funds in which Canadians
would like to invest are those that gradually become more
conservative as the investor approaches his/her life goals (76 per
cent). To address this need, BMO Investments Inc. offers BMO
LifeStage Class Funds. These six funds shift their asset mix from an
emphasis on equity funds to an emphasis on fixed income and cash
equivalent funds as they approach different target end dates. The
funds are intended to provide growth in the early stages and become
progressively more conservative over time as they near their
respective target end date. 
For more information on BMO mutual funds, please visit  
Get the latest BMO press releases via Twitter by following @BMOmedia 
Regional Breakdown: 
Percentage of Canadian RRSP holders that say their portfolio includes
mutual funds 

 National  ATL   QC   ON  MB/SK   AB   BC 
    72      74   65   78    73    71   62 

Percentage of Canadians who, when asked what type of mutual fund in
which they'd like to invest given the current market environment and
their life stage (whether inside or out of an RRSP, would want
income-generating funds.  

 National  ATL   QC   ON  MB/SK   AB   BC 
    81      81   64   88    85    88   83 

The Pollara online survey was completed between January 25 and
January 30, 2013 with a sample of 1,000 Canadians. A probability
sample of this size would yield results accurate to +/- 3.1 per cent,
19 times out of 20. 
BMO Mutual Funds, including the BMO LifeStage Class Funds, are
offered by BMO Investments Inc., a financial services firm and
separate legal entity from Bank of Montreal.  
Commissions, trailing commissions, management fees and expenses all
may be associated with mutual fund investments. Please read the
prospectus before investing and for details on how the BMO LifeStage
Class Funds are structured to allow switches without triggering a
disposition for income tax purposes. Mutual funds are not guaranteed,
their values change frequently and past performance may not be
Media contacts:
Amanda Robinson, Toronto
Valerie Doucet, Montreal
Laurie Grant, Vancouver
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