Target-date funds
Built to follow a timeline that can reflect life events such as a new home or retirement. Investments adjust to become safer as you get closer to your target date.
Target-risk funds
Invest in a range of different assets (stocks, bonds and cash) as part of a series. Each fund in the series represents a different risk level, typically ranging from Conservative to Aggressive.
Multi-risk target date funds
Makes investments based on when you need your money and the amount of risk you’re comfortable with. They’re diversified and flexible. Investments automatically adjust to become safer as it gets closer to your target date.
Guaranteed funds
These funds earn a set rate of interest. There’s also a guarantee that it, along with your capital, will be returned to you after a specific term. As a result, these funds are very low-risk. If you withdraw from guaranteed funds prior to maturity, a market value adjustment may apply.
Bond/fixed income funds
These funds typically invest in bonds issued by Canadian governments and companies. As well as paying a rate of interest, many bonds held in these funds also have a “market value.” This can rise and fall depending on interest rates. As a result, bond funds have the potential for higher returns than money market or guaranteed funds. But there is a greater risk of loss.
Balanced funds
These funds are also known as diversified funds and invest in a mix of stocks, bonds, and cash investments. The mix will change as market conditions change. But it usually stays within pre-determined ranges (Stocks 40-60%; Bonds 30-50%; Cash 0-30%). The benefit of a balanced fund is that it provides automatic diversification by investing in a variety of asset classes. This reduces your exposure to the risk of having all of your investments in one asset class that is performing poorly.
Canadian equity funds
These funds invest primarily in stocks of Canadian companies. Some of these funds may invest up to 30% of their assets in company stocks located in other countries. Stocks may be expected to rise in value more than other types of investments. They can offer the greatest potential for long-term growth. However, since stock prices fluctuate more than other types of investments, investing in stock funds is also riskier.
Foreign equity funds
These funds invest primarily in stocks of companies located outside of Canada. As with Canadian equity funds, foreign equity funds offer greater potential for long-term growth. But they can be riskier than other types of investments.
Tools & calculators
Budget calculator
Where does your money go? Use this monthly budget calculator to help you manage your spending and understand if you're falling short, breaking even or coming out ahead.
Life insurance calculator
Find out how much coverage is right for you - in just a few minutes
Net worth calculator
Use this calculator to find out how your net worth – the difference between what you own (your assets) and what you owe (your liabilities) compares to other Canadians.