Equities drive asset growth

The efficient frontier identifies the combination of assets that are expected to achieve the highest return for a given level of risk – meaning they are most efficient in terms of their risk/return characteristics. Since 1950, investing in fixed income has generally reduced investment risk. However, the stability of this asset class also lowers the long-term growth potential. Canadian equities have produced the necessary asset growth to achieve long term investment objectives. Even conservative investors should allocate at least 30% of their portfolio to equities. The expected outcome is enhanced investment returns with similar levels of investment risk over the long term.

ScreenHunter_34 Oct. 08 11.00

Feel free to contact me or visit my website for more information.

Douglas J. Bodtcher                               
Investors Group Financial Services Inc.
780-448-1988 ext. 284
Douglas.Bodtcher@investorsgroup.com

 

Tags:

This entry was posted on Tuesday, October 8th, 2013 at 10:03 am and is filed under Investing, Tips. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

The data included on this website is deemed to be reliable, but is not guaranteed to be accurate by the REALTORS® Association of Edmonton. The trademarks REALTOR®, REALTORS® and the REALTOR® logo are controlled by The Canadian Real Estate Association (CREA) and identify real estate professionals who are members of CREA. Used under license.