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Types of investments

There are a number of different 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. . Investors have to choose the ones best suited to their needs and personality.

Term savings	The capital invested Capital invested: Amount of money invested in an investment vehicle or in an asset.   in term savings is 100% guaranteed and may be invested for a specific period (from 30 days to 10 years) at a fixed 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.   that is higher than a current savings account. It is also possible to choose a savings plan that will allow you to recover the capital Capital: Amount of money that you have available to spend or invest.   before the term is up. But, most term savings products are non-redeemable, that is, investors must pay a penalty if they remove their investment before the end of the term. Find out more See Term Savings.
Market-linked guaranteed investments	This type of investment Investment: Amount of money invested to generate profit.   is similar to term savings, but instead of being fixed, the return Return: Amount of interest or dividends received from an investment in a given period of time.   fluctuates with the stock market Stock market: System in which investments such as company stocks and securities are traded through capital markets (e.g., New York Stock Exchange).. The yield is generally greater than a term savings plan would pay, but obviously, that depends upon how well the stock market performs! Find out more See Market-linked guaranteed investments.
Bonds	This type of investment is like a contract with a government or company. The investor lends money to the latter for a specific period and, in exchange, obtains interest on the sum provided. Find out more Visit the Desjardins Securities Web site.
Shares	When you purchase shares Shares: Part ownership of the capital of a business or company.   in a company, it's as if you became a part owner of the company, i.e. shareholder of this company. The percentage you own is largely determined by the number of shares you purchase. If the company does well, the share value increases, and the shares pay dividends Dividends: Part of the earnings of a company that is paid to its shareholders, who receive an amount in proportion with the number of shares they hold. , that is, part of the company's profits. If the company experiences financial difficulty, investors may end up with less capital when they sell their shares than they invested in the first place. Find out more Visit the Desjardins Securities Web site.
Investment funds	Investment funds Investment fund: Fund in which investors with similar goals pool their money together. This money is invested by professionals who manage the fund.   provide access to markets usually reserved to seasoned investors. They have tremendous advantages. Your investment is pooled with those of other investors and placed in the hands of experts who manage the funds according to the fund investment policy. They are also extremely flexible because you can buy or sell shares at any time. Find out more See Investment funds.
Registered Retirement Savings Plans (RRSPs)	RRSPs RRSP: (Registered Retirement Savings Plan) Savings method that allows you to put savings in tax-sheltered investments during your active life to supplement your income when you retire. Your RRSP savings will not be taxed until you withdraw them.   are not really a type of investment. They are plans in which your investments grow tax-free. Contributing Contribute: To make a payment into a retirement plan.   to an RRSP is a winning situation: It is a tax-sheltered Tax-sheltered: You will not have to pay income taxes on money you invest in a tax-sheltered investment (e.g., RRSP) until you withdraw the funds.   investment. Amounts invested or contributed are not taxed until money is taken out of the RRSP. You may remove money from an RRSP without paying tax on it to finance advanced studies, for example, or to buy a home. Every year, you can contribute up to 18% of your previous year's earnings to your RRSP. You may also add any unused contributions from previous years. Find out more See RRSPs and retirement savings.
Registered Education Savings Plan (RESP)	Like RRSPs, RESPs are tax-sheltered accounts in which you can save up for your children's, grandchildren's or other children's post-secondary education. Contributing to an RESP has 2 main benefits: you qualify for a federal government grant calculated at 20% of your annual contributions, up to a maximum of $400 per year. your investment is tax-sheltered. Find out more See RESP. Try a simulator that estimates postsecondary education costs.