Almost half of Canadian investors surveyed don’t know what they pay in fees, and many of them may seek lower fees after they learn more about what they’re paying for their investments, a survey by Tangerine Investments indicates.
Tangerine says CRM2 regulations for fees disclosure will help change investor awareness about fees.
A question is whether more investors will explore lower-fee alternatives to the traditional advisory model once they see what they’re paying in black and white.
Already, one-third (33%) of investor respondents don’t use an advisor, with many opting instead to be self-directed investors (30%), Tangerine says.
A further 10% of that third have a pension or stock options, 9% use an indexing strategy and 28% use a combination of self-directed investments, a pension or an indexing strategy. (Respondents could choose more than one option.)
Angus Reid conducted the survey for Tangerine, polling 1,003 Canadians online between June 29 and July 4, 2016.
Also read: 5 ways to use CRM2 for better conversations