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RBC Asset Management Learning Centre

Investment Strategies

Keeping Investments on Track

A Convenient Way to Reach Your Investing Goals

If you're looking for a way to build a well-constructed portfolio with a single investment decision, an investment portfolio solution by RBC Asset Management can help.

Offering a diversified mix of investments that are aligned with your goals and risk tolerance, our portfolio solutions can help you succeed through diversification, consistency and discipline.

Learn how the following key features of our investment portfolio solutions can help you stay on the right track:

A Disciplined Approach

Investors who constantly chase performance are rarely successful. They always remain a step behind because they buy high (after markets have rallied), and then sell low (after markets have declined).

Chart
Research shows that average investors who chase performance, by buying after markets have risen and selling after markets have declined, don't do as well as those using buy-and-hold strategy.

Since portfolio solutions are managed for you, they stay on top of current trends, helping you to avoid making decisions based on short-term market events.

A Well-Constructed, Diversified Portfolio

Managed Portfolio solutions always maintain diversified exposure to different countries and sectors. This helps to reduce the impact of a downturn in one particular sector, asset class or region. Portfolio solutions also protect you against a high degree of overlap across individual funds, ensuring proper exposure to markets offering sound potential.

Diversification is especially important for Canadian investors as the Canadian market is predominantly made up of Financials and Resources stocks, offering limited exposure to the Consumers and Health Care sectors.

A Focus on the Long Term

Many investors don’t realize that moving in and out of the market can undermine the long-term performance of their investments.

Table
Missing just the 10 best days in a 10-year period would have cut the average annual return of an investment in the S7P/TSX almost in half.

In fact, over a 10-year period, missing just the 10 best days in the market could cut returns almost in half. And because equity markets are so volatile, trying to predict the right time to invest is something even the most seasoned money managers don’t try to attempt. Because portfolio solutions always remain invested, you'll benefit from strong trading days and increase your probability of success over the long term.

Your Holdings are Rebalanced Regularly

Allowing your asset mix to drift can cause your portfolio to fall out of line with your long-term objectives and risk tolerance.

With managed portfolio solutions, you don't have to worry about this as we actively monitor and rebalance the portfolios for you to maintain the proper exposure to different asset classes. This also allows you to lock in gains from one asset class and redeploy these gains in other areas.

A Reflection of Current Market Trends

RBC Asset Management's market outlook is always incorporated into the investment portfolio solutions we offer. This keeps you on top of current investment trends – saving you the time spent researching the markets on your own.

Simplicity

In addition to providing you with the convenience and simplicity of a single investment decision, portfolio solutions also appear as a single item on your statement, making it even easier for you to track progress toward your goals.

Ready to learn more?

Talk to your advisor about how you can benefit from investing in a portfolio solution by RBC Asset Management. Or, review our range of investment portfolio solutions today.

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06/19/2008 18:54:56