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MEDI SCENE
choose when and how often you make contributions - ensuring you make investing a priority.
How can I lower the average cost of investing?

Investing smaller amounts in mutual funds over time helps you average the market volatility as
compared to lump sum buying. For example, your money will buy more units of a mutual fund
when prices are low; and fewer units when prices are high. Provided the fund gains in value over
the long term, you'll profit from your purchases during short-term price declines.
4. Build a diversified portfolio
Spreading your assets across a wide range of investments is an effective way to reduce risk and
increase potential returns over the long term. Holding a mixture of different types of
investments will help cushion your portfolio from downturns, as the value of some investments
may go up while the value of others may go down.
5. Monitor your portfolio
You should examine your investment portfolio with a advisor, or on your own, at least once a
year to ensure that it continues to meet your needs. Market conditions, life events (marriage,
children and retirement) and changing goals are cues to review your portfolio.
6. Align your investments with your time horizons
The type of investments you choose will depend on whether you're saving for long-term or
short-term goals. For your long-term goals, you may want to consider long-term, growth-
oriented investments. Your short-term goals call for investments that are more conservative,
and more accessible. For example, if you're investing to save for a down payment on a home,
you'll want quick and easy access to your funds.

Short-term goals Long-term goals

What These are objectives that are less These are objectives that are 5 or
are they? than 5 years away, for which you'll more years away. For example:

need a significant amount of Extended travel
money. For example: Buying Home
Vacation Children's post- secondary
House down payment education
New roof Children's Marriage
Planned expenses Retirement

What to To save for the short term, consider To save for the long term, you
invest in: investments that are more should consider a diversified
conservative in nature and more portfolio which may include a
easily accessible. growth component.
Source – www.cibc.com

Nov
Vol. : 18 - Issue : 1ol. : 18 - Issue : 1
V 21 November-2019ember-2019