Investment and Saving

What are the investment basics?

Investment is managing money within the accounts with the expectation of profit, has a high degree of principal amount’s security, well as security of return, within an expected period of time. Basically there are registered investment (RRSP) and Non register investment (Stock).

Basically the result of investment is called; Profit or dividend.Investing wisely is based on three principals: Discipline, Common sense and Knowledge. Whether you are saving for retirement, kid’s education or emergency funds, you have goals to be reached. For the right investment your basic knowledge is required plus a financial adviser who can help you.

What are the three main factors in investment?

There are three main and important factors for each individual to invest:

  1. Time horizon
  2. Money management
  3. Risk tolerance

and how they are interrelated. The amount of money, deposit and withdraw also playing an important role.

What are the major objectives for investment?

Some major investment objectives are:

  1. Safety of principal  means capital-preservation.
  2. Income generation.
  3. Growth of capital or capital gain.
  4. Liquidity of the investment.
  5. Tax minimization
  6. Risk tolerance.
  7. Inflation protection.
  8. Timing strategy.
  9. Diversify investment

Attention to these factors makes you a right investor.

What are the best investment vehicles for individuals?

There are several options for investment in Ontario for individual and small investors which can be operate by financial advisors.

  • Guaranteed Investment Certificates (GIC)
  • Segregated Fund
  • Mutual Fund
  • Stock
  • Bond
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