(NC) - Do you know what investments you have in your Registered Retirement Savings Plan (RRSP) and what options are available?
A recent survey from BMO Financial Group indicated that 70 per cent of Canadians were not familiar with what investments they held in their RRSPs.
"Knowing what investments you hold and reviewing the key fundamentals of investing are an excellent way to ensure you're on the right track with your RRSP," says Domenic Gallippi, Head of Term Investment Products, BMO Bank of Montreal. "For many, RRSP season represents an excellent opportunity to step back and take stock: get a clear financial picture and review what you hold in your RRSP."
The following are examples of investments commonly held in RRSP portfolios:Guaranteed Return Products - Guaranteed return options such as Guaranteed Investment Certificates (GICs) offer a variety of investing options that are stable and guaranteed. GICs are well suited for investors who have a low tolerance for risk because the original investment plus interest is guaranteed no matter how the market performs. BMO offers a full suite of GICs that fit with any investor's goals. For example, BMO recently launched the BMO Blue Chip GIC, which offers the shortest term available for a guaranteed investment at one year, while providing exposure to some of Canada's most reliable blue chip companies.
Mutual Funds - Whether your investment style is aggressive or conservative, mutual funds offer a range of options to suit every investor's needs. Mutual funds are professionally managed investment portfolios (think of them as 小蓝视频 like a "bundle" of stocks) that can provide exposure to many different industries, geographic regions and stock markets. Last year, BMO introduced innovative ETF Portfolios which are mutual funds that invest in BMO Exchange Traded Funds, offering low-cost investing in different markets and exchanges.
Individual Stocks - Experienced investors who are confident in their expertise in analyzing and understanding the markets can invest in individual stocks by purchasing shares in companies. Aggressive investors tend to have a longer investment time horizon and therefore have time to recoup any losses incurred by potentially volatile investments.
Mr. Gallippi recommends that, regardless of your investing style, you diversify your investments. By spreading your money among a variety of investments, you can increase the potential for higher returns while lowering your overall risk, creating a stronger and more robust portfolio.
For more information on setting up an RRSP, visit www.bmo.com or speak with a financial professional at your local BMO branch.
