Caisses Desjardins du Québec and Caisses populaires de l'Ontario [Change site]
Investment categories
When it comes to investing, your asset Asset: Item or amount of money belonging to a natural person. s are made up of the various investments you have made.
Investments fall into 3 categories:
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These include short-term deposits, redeemable savings and money market investments. These types of investments are for 1 year or less. |
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Fixed-income investments |
These include term deposits of 1 year or more and bonds. For the investment vehicles Investment vehicle: Any financial product (RRSP, term savings, investment fund, etc.) that allows you to invest an amount of money and make it grow. in this category, we know the return on investment in advance and the entire capital invested Capital invested: Amount of money invested in an investment vehicle or in an asset. is guaranteed at term. |
Growth funds |
They include investment funds, certain indexed savings products and shares Shares: Part ownership of the capital of a business or company. in
companies listed on the stock exchange. There is no way of knowing the rate of return Return: Amount of interest or dividends received from an investment in a given period of time.
on this type of investment in advance.
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These major investment categories do not all perform the same, nor at the same rate. When interest rate Interest rate: Amount charged or paid for the use of money, expressed as a percentage. Investors receive interest for letting others use their money and borrowers pay interest to borrow money. are adjusted, for example, some investments will increase, while others will register a decline. So it's important to diversify your portfolio in order to continue to profit from the economic situation, regardless of any changes that occur.
