Investor Profile

Secure, moderate, speculative—there are a number of investor profiles. It is crucial to select your portfolio or stand alone funds according to your profile, and to consider the capital you wish to accumulate.

To determine your investor profile, you’ll need to consider the following points:

• Your financial goals
• Your risk tolerance
• Your investment horizon

Your Goals

Your primary goal is to grow your money. But why? Do you want to:

• Earn higher returns than those offered by traditional savings accounts?
• Save up to purchase real estate or complete another major project?
• Put money aside for your children or grandchildren’s education?
• Prepare for retirement?
• Receive regular investment income?

Your answers will help you determine which type of investment is right for you.

Your Risk Tolerance

To determine your risk tolerance, you must consider how you will react to market fluctuations and establish your investment horizon:

• You aren’t worried about risk, and you do not need your money in the short term
• You are willing to accept lower returns in exchange for a certain amount of security

Take these statements into account when determining your investor profile.

Your Investment Horizon

How much time do you have to reach your goals? Your choice of investment strategy hinges on the answer.

• If you are young and do not plan to use your capital for a number of years (particularly if it is invested in an RRSP, RESP, or TFSA), opt for turnkey investment portfolios or growth funds. Even though they take longer to fully mature, they often offer superior returns.
  
• If you are about to retire, it’s best to protect your savings by investing in safer portfolios or funds and to focus on tax-friendly investments such as T-Class unit income options, which will provide you with steady income.