Ten Rules of Successful Investing

Mutual Fund Primer

Don't be dazzled by returns; choose investments that meet your needs. Past performance is no guarantee of future returns. That's why it's important to base your choice on the characteristics of the investment, not past performance.
Don't try to second-guess the market. Even investment experts are often unsuccessful at predicting market movements.
Invest regularly. Save by investing at regular intervals. When you invest throughout the year, you will buy more units when the market is declining, albeit less when the market is rising.
Diversify your investments. To minimize risk and boost potential returns, invest in different asset classes, geographic regions and sectors according to your investor profile (investment objectives, risk tolerance, and time horizon).
If markets are volatile, be patient. When you're investing for the long term, stick with your investment strategy. Historically, a market slowdown has been followed by a recovery.
Consider investments that offer tax benefits. Outside your RRSP, invest in products that offer tax benefits, such as investments that generate capital gains and dividends (e.g. equity funds and dividend funds) rather than in products that generate interest income (e.g. bond and money market funds). Remember that equity funds are subject to a greater degree of volatility than bond funds and are therefore typically recommended for investors with a longer time horizon (5 years or more.)
Don't deprive yourself of the growth potential of the stock market. Over the long run, stocks have outperformed both bonds and cash. The proportion of equities in your portfolio should be in keeping with your investment objectives, risk tolerance and time horizon.
Look beyond Canada's borders. Expand your investment horizons and invest outside Canada. International markets offer excellent return potential and diversification benefits.
Contribute to your RRSP every year. Instead of skipping your RRSP contribution this year, and depriving yourself of potentially thousands of dollars of retirement income, think about borrowing the money you need. You can then use the tax refund to pay down the loan.
Consult an Altamira Investment Specialist for a portfolio check-up at least once a year. It's important to revisit your investments as your fianacial situation changes. Discuss your portfolio with an Investment Specialist at least once a year or whenever an important event occurrs in your life (e.g. buying a home, promotion at work, or receiving an inheritance).