Asset Allocation
One of the first steps in building a better portfolio is diversifying
by asset class by including various types
of investments in your portfolio. It is important to achieve
the right mix of cash,
fixed income
and equities
based on your investment objectives, time horizon and risk tolerance.
Doing so increases your potential to earn returns consistent with
your long-term objectives. Several studies have indicated that the
majority of long-term portfolio performance comes from establishing
and maintaining the right asset mix.
Each asset class has its own specific risk-reward tradeoff. Your
goals, time horizon and comfort level determine the amount of risk
you find acceptable. Typically, the potential to earn a higher return
means increasing the level of risk.
To learn more about individual RBC Funds and how they can address
your investment objectives, access our Fund Updates. If you are ready to invest now, contact your advisor
or explore the options available
to invest with RBC Financial Group.
To learn more about diversification see below:
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