INVESTING
7 golden rules
for investors
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1_
Do not buy based on past returns; buy investment products that meet your needs

Past performances are not indicative of future returns. Your choice should be based on your investor profile and the investment solutions that suit you best.
2_ Don’t try to time your investment in the hope of outsmarting the market

Experts agree that it is almost impossible to predict market movements. Don’t expose yourself to the risks of market timing. It’s better to begin investing as
soon as possible so that your investment has time to grow. It’s not when you get into the market, but how long you stay invested.
3_ Diversify your portfolio based on asset classes and geographic regions

By investing in several asset classes (cash and short-term, fixed income securities and equities) and regions around the world, you’ll reduce your portfolio risk and optimize your potential return.
4_ In periods of market volatility, remain patient and calm

If you have a long-term investment horizon, for your retirement for instance,
stay true to your investment strategy and bear in mind that market drops are
often followed by upswings. Just be patient and you will end up recouping your
losses with gains in the long term.
5_ Don’t ignore the potential growth of the market

Although it is true that equities are generally riskier than bonds, they also offer a higher potential for long-term growth. Investing in products with a potentially lower return than what your investor profile suggests exposes you to an even greater risk: not accumulating enough capital for your retirement. Including equities in your portfolio in proportion to your risk tolerance is an effective long-term solution.
6_ Contribute to your RRSP each year

A single year without an RRSP contribution could mean thousands of dollars
in lost income at retirement.
7_ Review your portfolio together with your advisor once a year

Talk to your advisor at least once a year or whenever an important event has an impact on your needs and situation (purchase of a home, birth of a child, inheritance, etc.).