Non-registered Product Growing Again

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    Despite continuing market and global uncertainty, the 2012 investment season is showing strong growth in RRSPs and TFSAs, as well as renewed growth of non-registered investments, says a review by RBC Branch Investments. It has seen investment growth double year-over-year and has surpassed one million pre-authorized contributions for investment accounts. “In an uncertain economy, our clients have made more diversified investing a priority,” says Michael Walker, vice-president and head of branch investments, RBC. “What’s interesting is their move from one specific investment type ‒ like mutual funds ‒ to a diversified investment mix across longer term mutual funds, GICs and investment savings.” While Canadian investors continue to choose longer term mutual funds, guaranteed investment certificates (GICs) were also popular. This renewed focus on guaranteed investments is likely due to a combination of factors ‒ global uncertainty, the desire for higher yields available in longer term GICs, and interest rates remaining unchanged for the near term.