Other Steps You Can Take
Trying to anticipate how the market will perform can be challenging.
Instead, incorporate the following investment strategies to help
you realize greater success regardless of the size of your portfolio
or the nature of your investing goal.
-
- Focus on the long-term performance of your investments
- Understand that fluctuations are a natural part of market
cycles
- Recognize that investing for the long term lowers volatility
and increases potential returns
-
- "It's time in the market, not market timing, that counts"
- Trying to buy low and sell high can result in missing a
short and unexpected market rebound, which can significantly
impact your portfolio in the long term
-
- Invest fixed amounts at regular intervals - this fosters
a disciplined and consistent approach to investing
- By investing fixed amounts at regular intervals, you will
end up buying more units when prices are low and fewer when
prices are high
-
- Design your objectives to reflect your present and your
future
- Tailor your investment plan to your unique goals and level
of risk tolerance
-
- Use diversification to increase your exposure to potential
growth and smooth out portfolio returns
- Consider the three major asset
types (cash,
fixed
income and equities)
as key elements in your portfolio
Include Additional Levels of Diversification:
- Invest globally
to take part in markets outside of Canada
- Increase your portfolio's growth potential by investing
in various sectors and gain exposure to all the major sectors
in the world's economy
Be Realistic About Performance:
- Know what to expect
in terms of performance
- Understand that market declines are a natural part of the
investment cycle
- Remember that the historic long-term trend has always been
up
Stay Committed to Your Investment Strategy:
- Practice patience in investing
- Maintain your focus
and stay invested to reap the rewards of growth in financial
markets
Learn more about our selection of RBC
Funds or explore the options available to invest
now.
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