While almost two thirds of Canadians have a financial advisor, the study notes that 43% have at least some self-directed investments, with around one third of those with an FA also DIYing some of their investments.
Three quarters of all investors who took part in the research cited long-term goals such as retirement as their reason for investing, but DIY investors were more likely to have additional reasons such as boosting income, potential for very large returns, or simply to have fun.
Control is the most important reason to self-direct for a significant share of DIYers, but perhaps lower than expected at 33%, but not working with an FA is a route favoured by those who tend to have lower levels of trust in the government, media, and financial institutions.
DIY investors are also concerned about the value of the advice they get from FAs and the costs, but also say that they like to be personally responsible for their decisions. Convenience also plays a part along with gaining greater financial literacy.
Financial institutions are likely to be the first port of call for most investors though with 67% seeking information from banks and other FIs, followed by friends and family, and social media including YouTube and TikTok with the latter especially enticing for younger investors. DIY investors are more likely to turn to social media and are more likely to trust what they find there.