Investor confidence in mutual funds remains strong, according to the Investment Funds Institute of Canada’s first annual investor poll. IFIC released results of the survey at its annual conference today.

The survey reveals that Canadian mutual fund investors are confident in their funds’ ability to meet their household’s financial goals and are comfortable with their understanding of their investment, according to IFIC. “The numbers confirm our belief that confidence and knowledge levels among mutual fund investors are strong,” said Joanne De Laurentiis, IFIC’s president and CEO.

Fund investors were asked how confident they were in a number of investment products in meeting their goals. Real estate came first at 88%, followed by mutual funds at 85%, GICs at 71%, bonds at 63%, and stocks 54%.

Investors are attracted to mutual funds for a variety of reasons, including professional management, diversification and risk management, access to a wide range of investments, ease of moving within fund families and the ability to buy funds in small amounts, according to the survey.

Most investors (85%) buy mutual funds through an advisor, the survey found. Also, 91% of investors said they had the right information to make an informed decision prior to investing; 94% of investors who used advisors said they discussed risk tolerance and overall investment objectives and goals; and, 90% said the last time they invested in a mutual fund their advisor talked to them about the fund’s suitability. Perhaps not coincidentally, 8% of mutual fund investors said they’d experienced problems with their investments (apart from normal market fluctuations).

The most commonly used method of staying informed about mutual funds is through the account statement, with 95% saying they read their quarterly or monthly account statement, IFIC reported. Also, it found that the vast majority of mutual fund investors would prefer to receive a brief summary annual report, rather than a detailed one.

The telephone survey, conducted by POLLARA Inc., contacted 1,865 mutual fund holders between June 15 and July 11. Overall results are accurate to within 2.2 percentage points, 19 times out of 20.

IFIC indicates that the poll will form the benchmark for ongoing surveys.