| Make a healthy diversification of your | | | | and behavior. |
| investments! You will increase the potential return | | | | Term diversification is helpful in the short, medium |
| on your portfolio, while dodging fluctuations with | | | | and long term. If you have $10,000 to invest in |
| diversification. Diversification is a golden rule for | | | | term savings, you can divide that amount equally |
| investments. | | | | over five years: $2,000 in a title with maturities of |
| An example: You want to invest $ 20,000. You | | | | one year, 2,000 in a full two years and so result. |
| put that amount in international equity funds. So, | | | | In this way, each year you take advantage of |
| your portfolio is vulnerable to fluctuations in | | | | cash from a security reached maturity, you can |
| external markets. If instead, you divide that | | | | reinvest for five years to benefit, if any, of |
| amount among several types of investments - | | | | increased rates. |
| term savings, bonds, dividend funds, Canadian | | | | Geographic diversification allows you to combine |
| equity funds and foreign - you increase your | | | | domestic and foreign securities. You benefit from |
| chances of achieving good overall performance, | | | | the growth of the economy, regardless of |
| whatever the conditions. | | | | continent or country where it occurs with as |
| We must understand that the major asset | | | | much force. The diversification of capitalization: |
| classes (cash, bonds, shares) do not develop in | | | | when you invest in the stock market, either |
| the same way or at the same pace. Hence the | | | | directly or through mutual funds, In a given |
| importance of holding the largest number of | | | | economic context, these securities may not have |
| different investments. | | | | the same behavior. |
| Diversification of investments is included in a | | | | Diversify your mutual funds! Choose funds whose |
| portfolio of cash, fixed income (such as term | | | | managers are distinguished from each other by |
| savings or bonds) and growth stocks (shares in | | | | their management style, some can be aggressive, |
| equity funds). Thus, you benefit from the | | | | others more cautious, this complementary styles |
| complementarity investments that differ from | | | | has the effect of increasing yield potential. |
| each other by their performance characteristics | | | | |