Canadians have accumulated savings of one trillion dollars in mutual funds, marking the first time in their 82-year history in Canada that funds have topped this significant milestone.
The Investment Funds Institute of Canada (IFIC) released its latest industry overview on Wednesday, which shows that assets under management (AUM) for the mutual funds industry reached $1.01 trillion as of January 31, an increase of $140.1 billion or 16.1% over the previous 12 months.
“The importance of this milestone is the increase in wealth it represents for the roughly 4.6 million Canadian households that choose to save for their financial goals through mutual funds,” noted IFIC president and CEO Joanne De Laurentiis.
“Mutual funds have grown tenfold in value since 1990 and are a cornerstone of Canadians’ retirement savings. Of the $986 billion increase since 1990, approximately 54% was generated by net sales, while 46% is the increase in the total value (market effect) of those savings,” added De Laurentiis.
IFIC noted that advisors are the most popular way for Canadians to purchase mutual funds.
“Advisors can take pride in the significant role they have played in helping Canadians achieve their financial goals,” De Laurentiis stated. “Research shows that advised households are twice as likely to save regularly for retirement across all age groups.”