Canadian investors are re-engaging with markets in 2025, encouraged by easing interest rates and strong equity performance, according to a national survey by the Securities and Investment Management Association (SIMA). The study revealed a sharp rise in purchases of mutual funds and ETFs, even as many households remain cautious in an uncertain economic environment.
“Declining interest rates are pushing individuals up the risk curve to earn better returns,” explained Ian Bragg, SIMA’s vice-president of research and statistics. “As yields on deposits fall, investors are shifting toward bonds, equities, and other higher-risk products — helped by strong equity market gains.”
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This year’s SIMA investor survey, conducted by Pollara, paints a more nuanced picture of investor behavior than in past editions. It’s the first since the Investment Funds Institute of Canada rebranded as SIMA and broadened its focus beyond mutual funds and ETFs.
Different Paths for Different Investors
The survey highlights generational and behavioral differences. Older, advice-dependent investors continue to stick with traditional portfolios, while younger and more confident investors are exploring lower-cost, tech-enabled investing options.
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Eight in ten investors still use advisors for at least part of their investing, and four in ten rely entirely on professional advice. Mutual fund holders are the most dependent on advisors, while ETF investors — typically younger, male, and more confident — are more likely to invest independently.
“Self-directed investing has been steadily increasing,” noted Lesli Martin, Pollara’s senior vice-president. “That trend continues to gain momentum.”
Trust in advisors remains high: 93% of investors say they trust their advisor, and 84% believe the advice is worth the fees. Still, 20% now invest entirely on their own, a figure that jumps among ETF and crypto investors. Thirty-eight percent of investors use an online or discount brokerage account — mostly on a monthly basis — though 62% still consult advisors occasionally, blending digital tools with professional guidance.
Finfluencers and AI Shape New Investment Behaviors
Digital platforms are playing a growing role in investor education. Thirty-one percent of investors now turn to “finfluencers” — non-professional online financial content creators — for guidance, while one in four have used generative AI tools for investment advice. These figures were tracked for the first time this year.
Cost and accessibility drive this trend: 47% of finfluencer followers cite free content as the main reason, and 28% find advisors too expensive. SIMA intends to study the quality and impact of such advice more closely.
“Roughly 40% of investors look to finfluencers for product recommendations,” said Bragg. “That’s a striking figure — it’s crucial to understand the quality behind that guidance.”
Strong Rebound in Investment Activity
Buying activity has surged across major investment vehicles. Half of mutual fund investors bought a fund in the past year — double the 2024 rate — while 62% of ETF investors made purchases, up from 41% the previous year. Two-year purchase rates also climbed sharply for both groups.
This renewed activity comes despite a generally cautious sentiment: 32% of investors said they are investing less because of economic uncertainty, compared with 19% investing more. Crypto investors were the exception, with 38% increasing their investments.
Why Some Canadians Still Stay on the Sidelines
For non-investors, the obstacles are both financial and psychological. Forty-eight percent say they lack sufficient funds, 29% fear losing money, and 25% don’t know how to begin. Younger women, lower-income households, and new Canadians are more likely to fall into this group.
“Often, the barrier is psychological,” Martin explained. “People think investing is too complicated and never take the first step.”
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