Canadians are taking advantage of lower interest rates to invest in real estate and mutual funds, according to a Gallup poll commissioned by Manulife Financial.

“Declining interest rates appear to have spurred more interest in both investment real estate and mutual funds this summer,” said Bruce Gordon, Manulife’s executive vice president of Canadian operations. “The mutual fund and housing industries are reporting stronger sales and our index suggests consumers generally are showing a keener interest in both investment real estate and mutual funds.”

The quarterly Manulife Investor Sentiment Index monitors how Canadians say they feel about 10 different investment categories and vehicles. The index for each individual category or vehicle reflects the percentage of those surveyed who say they believe it is a good or very good time to invest, minus the percentage who say it is a bad or very bad time to invest. The summer 2001 index, based on a mid-June survey of 1,004, gained one point to reach +29, after rebounding by four points earlier this year.

Of 10 vehicles of investment, interest in investment real estate showed the strongest index gain in the past three months, while mutual funds showed the sharpest rebound among specific investment vehicles to tie segregated funds at +35.

Despite volatile markets and softer RRSP and mutual fund sales earlier this year, Gordon said the index could indicate strengthening investor confidence — particularly if Canadians continue to show confidence in real estate and other long-term investments.