Savings and Investments in Canada

Savings and Investments in Canada

The simplest way of saving money is to put aside a fraction of your income every month in the savings account. It is a conventional method to save money for a buffer in a critical situation. However, exploring multiple investment vehicles to build substantial capital will help you pursue your big dreams after immigrating to Canada. Contact an expert immigration professional to find ways to immigrate and settle in Canada.

Understanding goals, risks, and rewards

Immigrants constitute a significant portion of money-savers in Canada. Some of the common objectives to save or invest money are:

  • Kid’s schooling or university expenses
  • Retirement fund
  • To facilitate down-payment for purchasing a new home

Canada has an efficient and reliable system to help you achieve your objectives, irrespective of your investment goals. Before we dig deeper into ways to invest money in Canada, let us understand factors you must consider while investing in Canada.

Investment objective –

Conservative investment methods like mutual funds can guarantee significant returns, provided you are ready for a long-term investment. You can expect higher gains in a short time by considering a few aggressive methods of investing. You need to understand the risks of choosing these investment methods.

Risk factors –

Risks and rewards go hand in hand as more rewarding investments tend to be a bit riskier. Investors receive higher returns in a shorter time by choosing such options. Investment in stocks is an aggressive way to invest money.

Investment options in Canada

Let us browse some popular investment vehicles to understand how to save and invest your income in Canada and become a super saver.

High-interest savings account –

It is an ideal option for individuals who can afford to park their funds for a longer time. You will earn higher interest than standard savings accounts. This option is suitable for you as it offers slightly better returns than your Chequing account. These savings accounts are perfect for individuals who do not wish to take risks while managing their money.

Mutual funds –

These are a collection of diverse investments. Mutual funds help you put your eggs in different baskets to mitigate the risks of investing in stock markets. The instrument enables you to enjoy the benefits of investing in stocks without buying individual stocks. Moreover, there are professional fund managers to take care of your investments so that you do not have to do your homework on companies.

Guaranteed Investment Certificate –

a GIC is an investment vehicle that offers a predictable return on the deposit. Individuals cannot withdraw the amount from a GIC before the maturity period. It is a suitable investment for you if you have funds that are lying idle in your savings accounts.

Exchange-traded funds –

ETFs are similar to regular stocks as they are open to trading on stock exchanges and the prices keep fluctuating daily. ETF investment is a suitable option to benefit from stock market gains with no significant risk.

Stocks –

Stock investment offers handsome returns provided an individual is open to taking risks of the market volatility. You can either adopt daily trading to make quick investment gains or be a patient investor to build your wealth as a long-term investment strategy.

Bonds –

If you want an investment vehicle that offers predictable returns, then you should consider investing in bonds. Different corporations and even governments offer an opportunity to invest in their bonds. You are essentially offering a loan to the corporation when purchasing a bond.
Experienced investors can do their homework and make wise investment decisions. You can always consider hiring online brokers or financial advisors to chart your investment journey. Canada offers a variety of investment options to serve the diverse investment goals of immigrants.

Dev Immigration Services Incis a trustworthy resource for aspiring immigrants to Canada. We offer tailor-made immigration solutions to individuals who wish to study, work, and settle in Canada. Call us today to know more about our result-oriented immigration services.

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