Canadians are taking a cautious approach to investing according to a recent national poll conducted for Manulife Financial.

The 24th quarterly Manulife Investor Sentiment Index, based on a national survey in early December, found that balanced funds and Registered Education Savings Plans showed the strongest gains among those areas surveyed, while the sentiment for investing in stocks remains negative.

Investing in their own homes – either through renovations or paying down the mortgage – remains the most popular place for Canadians to put their money. The real estate index climbed to +50, up five points from September.

Based on a survey of 1,000 Canadians by Maritz Research, the overall Manulife Investor Sentiment Index gained three points from September to +17 in
the latest survey, following a four-point drop the previous quarter.

Among six investment categories measured each quarter, the largest gains appeared for balanced funds and real estate, since the previous poll in
September. Balanced funds gained eight points, while investing in their own homes or investment properties climbed five points.

Fixed income investments, including GICs and annuities, held steady. Fixed income had gained four points in September, amid speculation of higher rates, after a drop of seven points in June and a nine-point decline in March. The index for fixed income investments held at +8.

Despite a one-point gain, the index for stocks remained in negative territory at -1. The stocks index reflects 33 per cent who said it’s a good or very good time to invest in stocks, either directly or via mutual funds, while 34 per cent view equities as a bad choice. Another 16 per cent felt it’s neither a good or bad time to buy shares.

Responding to a separate question, Canadians are still focused on paying down their consumer debts. It was named as the top financial priority (named by 21%), while saving for retirement ranked second, named the top priority by 16% of those polled. In third place, paying down the mortgage ranked was cited as their key priority by 12%, compared to saving to buy a home by 10%.