The Plan by Investors Group^TM

Helping You Build Wealth

Turn risk to your advantage. See how we can help you can invest wisely and develop a sound portfolio.

Making your investments work for you

To build and then preserve wealth you have to be an investor - not merely a saver. And no matter what you invest in, your investments will have an element of risk associated with them. But there are ways you can manage these risks and have them work to your advantage. Here are a few strategies we can help you with to address some of the most common risks you could face.

Just one basket? How you can diversify.

Instant variety

It's classic advice, but definitely true: Don't keep all your eggs in one basket. Most of us get the diversification we need in our investment portfolios through mutual funds. Each mutual fund holds many investments, so you immediately diversify your assets by investing in any one fund. If you hold several mutual funds, your diversification increases dramatically. Professional advice will ensure that you don’t under, or over, diversify.

Variety plus

Variety means holding funds in various market sectors and in different areas of the world. Cycles in various world markets do not always move in tandem with each other, so there are always investment opportunities somewhere. We’ll help you choose the right mix, which is consistent with your own personal tolerance for risk.

Rocky road? How to have volatile markets work in your favour.

Long-term trip

No one promised you that the trip is always smooth. Some investments are volatile. But if you stay the course when your investments hit a pothole, you'll do well over the longer term and we’ll use volatile markets to your advantage. The fact is, most of us don't need to have concern over how our investments fare over the short term. If you are in the market for the long term, say 10 years or more, investment volatility really shouldn't be a risk factor at all. History tells us that equity-oriented investments like stock mutual funds have risen in value over the years, regardless of the short-term ups and downs in the market.

Cruise control

When investing, we often manage the day-to-day market price swings by making investments on a regular basis. We call this strategy dollar-cost averaging. Suppose you invest in a mutual fund from every paycheque or once a month. Your regular purchases will buy more fund units when the unit price is lower and fewer units when the price goes up. Overall, your average purchase price will tend to be lower than the highest price you paid. A smart strategy for building wealth through any market conditions.

Rising costs? How you can beat inflation.

Good growth

If something costs you a dollar today, it could cost you two or three times as much 20 or 30 years from now. That's inflation. And that is why you need more than a savings account or just fixed-income investments in your portfolio. These days, to counter inflation you need to have at least some growth-oriented investments, such as equities or equity mutual funds that tend to rise in value over the years. And you should not necessarily stop holding these funds once you retire, because inflation doesn't stop. With potentially 30 or more years of retirement ahead of you, you need to keep your money growing at a good rate.

Contact your Investors Group Consultant for more strategies on building wealth while dealing with common risks along the way.

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Written and published by Investors Group as a general source of information only. It is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax, legal or investment advice. Readers should seek advice on their specific circumstances from an Investors Group Consultant.