And as much as they love you, they may not be thrilled with the idea of taking you as a roommate forever. Formulate Your Investment Strategy You must formulate an investment strategy in line with your needs and goals, with which you are comfortable, and with a level of risk that you can tolerate. Learn about the various asset classes. Cash or cash equivalents include investments such as savings, treasury bills, money market funds, Canada Savings Bonds. Fixed income investments are term deposits, GICs and corporate bonds.
Equity investments are stocks and equity mutual funds.
You can invest for various reasons, such as income, growth or safety or a combination of these. Income means you will seek investments that will provide a steady stream of income. With growth, you are seeking a better return but you risk a loss of your principal. For safety, nothing is better than cash or cash equivalents. Overall, you should hold several investments to ensure that you are at all times properly diversified.