|By Marketwired .||
|June 13, 2014 06:04 AM EDT||
TORONTO, ONTARIO -- (Marketwired) -- 06/13/14 -- BMO Harris Private Banking today released a study on hobby (or passion) investing and high-net worth Canadians. The study is the sixth and final in a series by BMO Harris Private Banking examining trends among the affluent in Canada.
The study found that just over half of the country's wealthy engage in some form of hobby investing (defined as adding collectible assets to their portfolios as a means of diversification and, just as important, as a way to have and to hold the things they love the most). Items in which the wealthy are most passionate about investing in include:
-- Coins (22 per cent) -- Art (21 per cent) -- Antiques (20 per cent) -- Stamps (11 per cent) -- Wine (10 per cent) -- Classic cars (7 per cent) -- Sports memorabilia (6 per cent)
"Generally, we find that clients who do engage in hobby investing tend to have up to 20 per cent of their assets tied up in them," said Richard Mason, Head of Investment Management, BMO Harris Private Banking. "Investing in one's passions enables people to be part of something that they feel strongly about without having to invest a lot of time in it. It also allows them to be able to pass on to their heirs something that reflects their personality and interests, thereby creating a legacy."
What Drives People to Engage in Hobby Investing?
The study also identified the main reasons why the country's affluent engage in hobby investing and found that half (49 per cent) do so simply because it is "fun". Other factors identified included:
-- Allows me to combine my interests with investing (44 per cent) -- Provides me with something unique to pass down to my children (26 per cent) -- Provides me with sound investments that will appreciate in value (23 per cent) -- Enables me to show off my investments to others (20 per cent)
Mr. Mason noted that, regardless of what motivates people to combine their hobbies with investing, there are a few cautionary factors Canadians of all income levels need to consider depending on the particular hobby. For example:
Antiques: can be very illiquid and therefore not suitable for those who may need to convert them to cash in a short period of time.
Wine and art collecting: are long-term propositions, so not appropriate for those with a short-term investing horizon.
Stamps and coins: there is a robust counterfeit market in both these items, so investors need to be careful about their authenticity and well educated about the risks.
Comic book collecting: may be trendy today, but the market may not be so hot in the long or even the medium term.
The online survey was conducted by Pollara between March 28th and April 11th, 2013 with a sample of 305 Canadians with at least $1 million in investable assets. The margin of error for a probability sample of this size is +/- 5.6%, 19 times out of 20.
About BMO Harris Private Banking
Backed by the stability and resources of BMO Financial Group, professionals at BMO Harris Private Banking are responsible for the successful management of wealth by providing expert advice and highly personalized services in banking, investment management, wealth planning, estate, trust, succession planning, business transition and philanthropic services - all in a coordinated approach.
For more information on BMO Harris Private Banking, please visit http://www.bmo.com/harrisprivatebanking.
Get the latest BMO press releases via Twitter by following @BMOmedia
Mar. 23, 2017 02:00 AM EDT Reads: 3,632
Mar. 23, 2017 01:15 AM EDT Reads: 3,276
Mar. 23, 2017 12:00 AM EDT Reads: 1,134
Mar. 22, 2017 11:00 PM EDT Reads: 2,922
Mar. 22, 2017 10:15 PM EDT Reads: 3,238
Mar. 22, 2017 10:15 PM EDT Reads: 1,697
Mar. 22, 2017 10:15 PM EDT Reads: 3,202
Mar. 22, 2017 09:30 PM EDT Reads: 2,295
Mar. 22, 2017 06:15 PM EDT Reads: 3,928
Mar. 22, 2017 05:45 PM EDT Reads: 1,793
Mar. 22, 2017 04:30 PM EDT Reads: 814
SYS-CON Events announced today that Cloudistics, an on-premises cloud computing company, has been named “Bronze Sponsor” of SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Cloudistics delivers a complete public cloud experience with composable on-premises infrastructures to medium and large enterprises. Its software-defined technology natively converges network, storage, compute, virtualization, and management into a ...
Mar. 22, 2017 03:45 PM EDT Reads: 1,156
Keeping pace with advancements in software delivery processes and tooling is taxing even for the most proficient organizations. Point tools, platforms, open source and the increasing adoption of private and public cloud services requires strong engineering rigor - all in the face of developer demands to use the tools of choice. As Agile has settled in as a mainstream practice, now DevOps has emerged as the next wave to improve software delivery speed and output. To make DevOps work, organization...
Mar. 22, 2017 03:30 PM EDT Reads: 799
SYS-CON Events announced today that Juniper Networks (NYSE: JNPR), an industry leader in automated, scalable and secure networks, will exhibit at SYS-CON's 20th International Cloud Expo®, which will take place on June 6-8, 2017, at the Javits Center in New York City, NY. Juniper Networks challenges the status quo with products, solutions and services that transform the economics of networking. The company co-innovates with customers and partners to deliver automated, scalable and secure network...
Mar. 22, 2017 03:15 PM EDT Reads: 541
My team embarked on building a data lake for our sales and marketing data to better understand customer journeys. This required building a hybrid data pipeline to connect our cloud CRM with the new Hadoop Data Lake. One challenge is that IT was not in a position to provide support until we proved value and marketing did not have the experience, so we embarked on the journey ourselves within the product marketing team for our line of business within Progress. In his session at @BigDataExpo, Sum...
Mar. 22, 2017 02:45 PM EDT Reads: 2,220