Invest wisely and sleep easy

Canada, 10th September: The present volatile conditions of markets can send shivers to investors about their fortunes. So, planning to invest wisely can help you stay calm.

The instant and constant waves of boom and burst in the Canadian market have resulted in many ups and downs in the recent past, adding to the woes of many investors in Canada.

So, the question that bothers investors is not in selecting the bonds, funds or stocks, in fact, the problem is of adopting a strategy that will make investments grow smoothly over the years.

According to Industrial Alliance Securities Inc.’s vice-president and head of discretionary wealth management, Marc Stern, the current financial scene is likely to make people shy away from normal investment planning.

Every now and then, markets tend to behave in a deviating manner and moving in seamless directions, sometimes low, other times too high. And such market trends are likely to confuse financial investors.

So, the advice to prospective investors by vice-president (investment products), RBC Global Asset Management, Jonathan Hartman is not to know about the highs and lows of market. Rather, the long-term investors should set an asset combination and rebalancing points and then proceed towards the plans.

Hartman also offers the future investors to adopt the approach of dollar-cost averaging to successfully manage the risks involved with poor entry point. The investor behaving in a consistent behavior is surely going to be rewarded by markets. So, poor returns on any asset are likely to be followed by big returns, since that’s the way the market behaves.

And an investor with solid investment plans will be rewarded when the market returns to become bullish after a soaring period.

So, the market experts advise not to change your horse while being in the mid-stream or you are likely to lose.

If you reduce your stock investment expenses by 1 percentage point(which can be done by cutting back annual fee of 2.5 percent on managed mutual funds to around 1.25 percent), your savings for the coming one or two decades are likely to be huge, says CEO and president of RBC Direct Investing, Jason Storsley.

Moreover, there are a number of practice accounts which can be used to check your financial investment plans and strategies.