Conducted earlier this year, the study cites key reasons for this home-market bias: a belief in supporting Canadian companies, a feeling that Canadian markets offer enough diversification and comfortable familiarity, and a confidence that Canada will continue to outperform global markets.
The survey found that 95% of affluent investors do not know there are no longer foreign content limits within RRSPs. The exploration into home bias investing was conducted by Environics Research Group.
Of the 1,000 affluent Canadian investors who were interviewed, 79% think Canada offers enough diversification, while a similar proportion say they are more familiar with Canadian investments.
The study also found that two-thirds of those surveyed believe Canadian markets will outperform international markets (67%), while a similar proportion of respondents feel that global markets are riskier.
Few cited prior bad experiences with foreign investments as a reason not to invest outside Canada.
Almost one-third of affluent Canadian investors said they check international business news daily and almost all receive some financial advice.
All respondents (100%) said they have exposure to Canadian Markets. Almost two-thirds have exposure to the US (64%), and 57% have exposure to international markets.
