IMPROVE THE RETURN ON YOUR INVESTMENTS
Generally speaking, the return on an investment will increase proportionately to the level of risk associated with the investment. Consequently, to increase potential return, you have to assume a higher risk.
Ideally, your objective should be to maintain the right balance between risk and return. To achieve this, you need the right combination of cash assets, fixed-income investments and equities.
CASH ASSETS
Cash assets are easily converted into cash, with no risk of loss. Ready access to your funds in the event of an emergency or to take advantage of other investment opportunities is a good thing. But it's important to remember that too much cash limits the potential return on your portfolio.
The most popular investments in this category are:
- savings accounts
- money market funds
- redeemable guaranteed investment certificates (GICs)
- government savings bonds
FIXED-INCOME INVESTMENTS
Fixed-income investments have two primary objectives: generate income and provide capital security. With these investments in your portfolio, you are assured of a stable return and a certain level of income.
The most popular investments in this category are:
- bond and mortgage funds
- non-redeemable guaranteed investment certificates (GICs)
- dividend funds
- strip coupons
EQUITIES
Since equities are listed on the stock market and governed by the law of supply and demand, growth stocks are subject to price variations that can result in high potential returns. In a balanced portfolio, equity investments help increase the value of your capital.
The most popular investments in this category are:
- company shares
- equity funds
- index funds
- variable return guaranteed investment certificates (GICs)
- specialized funds
If you already know your investor profile, click on it to view a recap of the main characteristics of your portfolio and optimum diversification by type of investment.
If you have not determined your investor profile, or if you think your profile may have changed as a result of changes in your financial situation, go to the Personalized Investment Plan (PIP).
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