A mix of DIY and advised investing is entrenched for a significant group of Canadians
Canada’s investor landscape is evolving with around one in eight Canadians now operating as hybrid investors, mixing self-directed investing with professionally managed assets.
New research revealed in the CSA’s Hybrid DIY Investing: A Research Summary Report reveals that by blending DIY and advisor-led strategies, these investors challenge the traditional segmentation of “DIY vs advised.”
According to the report hybrid investors tend to be younger, more often male, and more likely to hold a university degree compared to the general investor base. Approximately 12% of Canadians now fit that hybrid model.
And it’s unlikely that these investors will change track with 68% planning to maintain this dual approach with 93% expressing strong certainty in doing so.
These hybrid investors report a far more aggressive risk profile with 84% comfortable with moderate or higher risks, compared to 46% across the broader investor population. But those who co-create a financial plan with an advisor are less prone to speculative behavior such as high turnover, crypto or options plays, compared to those operating without such collaboration.
Many hybrids believe their advisors are aware of their self-directed activities and focus group participants more often described their advisor relationships as transactional or distant, rather than deeply engaged.
Currently, 61% of investors report working with a financial advisor, representing an eight-point decline since 2020. The sharpest decreases were seen among investors younger than 45 and those whose portfolios are under $100,000.
Hybrids with higher risk appetites often show weak fraud awareness, relying on informal sources like forums or internet searches instead of professional or institutional safeguards.
A growing share of Canadians now turn to social media for investment insights. Since 2020, the proportion of investors using these platforms for financial information has climbed by 18 points, reaching 53%.
Among younger adults, the trend is even more pronounced with 82% per cent of investors aged 18 to 24 relying on social channels, with YouTube, Instagram, and TikTok leading the way. Nearly half of Canadians say they have come across investment opportunities through social media, up 17 points since 2020, with this reported most often by younger demographics.
"This study provides a compelling portrait of hybrid investors and underscores the importance of having meaningful discussions with your financial advisor," said Stan Magidson, CSA Chair and Chair and CEO of the Alberta Securities Commission. "Regardless of the investing method chosen, it's clear that a comprehensive financial plan that encompasses all of your investment accounts can empower investors to make informed investment decisions aligned to their risk tolerance and goals, while avoiding potentially unsuitable or fraudulent investment opportunities."
