DIVERSIFY YOUR INVESTMENTS

Investment professionals all agree that the best strategy for reducing risk and increasing potential return is to diversify your investments. In other words, don't put all your eggs in one basket. An effective diversification strategy will take into consideration the four elements below:

VARY YOUR ASSET CLASSES

Based on your investor profile, select the appropriate proportions of cash, income and growth investments for your portfolio. [Details]

INVEST IN SEVERAL GEOGRAPHIC REGIONS

Take advantage of the growth potential of foreign markets to decrease your dependence on the Canadian economy and markets. [Details]

SPREAD YOUR INVESTMENTS ACROSS SEVERAL INDUSTRIES

That way, you limit your risk in the event of a slowdown in a particular sector. [Details]

CHOOSE DIFFERENT MANAGEMENT STYLES

If your portfolio contains mutual funds, the fund manager's style is yet another diversification factor to consider. [Details]