Canadians investing a lot of cash: poll

Holding the same amount of cash as stocks means you could be missing out on chances to build up investments, says a new Edward Jones poll that shows Canadians are holding 13 per cent in low-risk GICs.

Among Canadians with investments including Registered Retirement Savings Plans (RRSP) and Tax Free Savings Accounts (TFSA), the majority -- some 41 per cent -- own mutual funds, followed by stocks at 14 per cent and Guaranteed Investment Certificates.

The online survey, conducted by Leger Marketing in early April, showed half of Canadians plan to make some kind of investment this year and of those, one in four plan to buy GICs. Craig Fehr, Canadian market strategist for Edward Jones, questions further adding to cash and short-term holdings.

"Cash is providing little to no return in today's environment," said Fehr. Given the market's performance, with stocks doing well but the potential for rising interest rates going forward, Fehr said it's a good time for investors to review portfolio mixes for short and long-term gains.

The poll showed some 4 per cent of investors holding bonds, with investors in Quebec holding more bonds at 10 per cent, and Manitoba and Saskatchewan holding the lowest at 1 per cent.