Investing

ETFs tend to get a lot of attention these days. Mutual funds, however, have been a Canadian portfolio cornerstone for decades. In fact, according to the Investment Funds Institute of Canada (IFIC), the amount of money Canadians invested in mutual funds skyrocketed from $100 billion to $1.71 trillion between 1990 and the end of 2019. Now, there are over 5,000 mutual funds in Canada. And it’s no wonder Canadians are still so keen on mutual funds. Right off the bat, they offer diversification by design and professional management —two things many investors look for. And while ETFs are gaining in popularity for their benefits, as Jonathan Hartman, vice president and head of Advisor Channel Sales atRBC Global Asset Management explains, “mutual funds remain the most commonly used vehicle in Canada, especially among investors with $25,000 to $50,000 to invest.” This guide answers some of the biggest questions investors have about mutual funds in Canada, and why they are such a

They’re a top recommendation of investing legend Warren Buffet. They’re also great for new investors and/or those looking to follow a passive investing style. ‘Index fund’ sounds like a fairly technical term, doesn’t it? In reality, they’re pretty straightforward —and can be a great way of diversifying your portfolio at a low cost. This guide will outline how index funds work, explain the pros and cons, and list some of the top funds in Canada. What are index funds? Simply put, an index fund is a type of mutual fund or exchange-traded fund (ETF) with a portfolio designed to match or track a specific market index. This might be theStandard & Poor’s 500 Index, or S&P 500, which is 500 of the top companies on the US stock market, or Canada’s benchmark S&P/TSX Composite Index. For example, the iShares S&P/TSX 60 Index ETF(XIU) tracks the 60 biggest stocks on the TSX. As of November 5, these include Shopify, RBC, TD,

A balanced portfolio is typically a mix of stocks and bonds within your investment holdings. The strategy is to take advantage of stock market growth with a cushion in bonds to mitigate downturns. Stocks tend to be the engine driving portfolio growth.

A dividend ETF is an exchange-traded fund that is designed for investment in a selection of high-dividend paying stocks. These ETFs typically track a specific index that is screened to include blue-chip type companies considered to be lower risk.

Investing in the stock market can be a wild ride with lots of ups and downs even in the best of times. And the coronavirus pandemic has had a huge impact on world markets. The Canadian stock market is no exception.

Sound investment advice can be found in the best investing books for Canadians. These are written by people who have ‘been there, done that’ in the finance and business sectors. Investment books can become your own playbook for the common sense of investing when you learn from the knowledge and experience shared.

Decisions you make early in life can have a big impact down the road. So it’s important to invest in Finance 101 to ensure a secure future.

Today, you don’t need to hire a broker to manage your investment portfolio. If you’d rather go it alone, you can sign up to use a discount brokerage and run your investments how and when you see fit.

TFSAs are a great savings tool with very few limitations. However, there is one important limitation – how much money you can put into the account in any given year.

Capital gains taxes are most commonly associated with real estate. However, they are also charged with a wide variety of investments and the resulting income.

The stock market can feel like a vast abyss into which you throw your hard-earned money. And, it can be hard to decide how best to invest, much less the best stocks to choose from.

Learning the difference between a mutual fund and an exchange-traded fund (ETF), for example, can help you choose the best option for you today, and into the future. To help you decide, here is a complete guide to ETFs.

How many movies have you seen that show the madness on the stock trading floor? The reality is, of course, that the stock market is a hot investment tool. And, people can and do make a lot of money by investing in stocks. But there is a lot to know about how to buy stocks.

However, there are some fairly trustworthy places to invest that should give you returns and security. If you’re new to investing and not sure what to do, a Canadian robo-advisor might be a great choice.

When deciding which investment tool makes the most sense for you, it’s important to understand all of the available options. But, there is a lot to know. Learning the difference between a mutual fund and an ETF, for example, means you can choose the best option for you today, and into the future.

There are two different ways to benefit from investing in stocks, cash payouts and dividends. A dividend is basically an additional stock added to your account bucket. For each dividend stock you own, you are paid out a portion of the company’s earnings.

Financial planning is the best way to manage the waxes and wanes in your financial situation. It allows you to live comfortably, while saving for a rainy day and, eventually, retirement.

As with all investment products, there are limits and rules to what and when you can contribute. And if you go above the allotted maximum, there is typically a penalty. Similarly, TFSA over contributions are subject to a tax.

It sounds simple enough, but it’s important to understand how you can benefit from investing.

A TFSA works like any savings account, in that you set aside whatever money you want (up to a government-set maximum) and you can remove it whenever you want, without penalty.