is important to have a plan in place to protect and enhance your
savings. One of the keys to a successful investment plan is managing
risk. A well diversified portfolio that reflects your investment goals
and risk tolerance is essential.
Ensuring the foundation is solid
success of any investment plan is the foundation upon which it is
built. When assessing your strategic investment program it’s important
to consider a number of factors, including your investment time horizon,
investment goals and risk tolerance. Once these factors have been
defined you can identify the appropriate combination of cash, fixed
income and equities to include in your portfolio.
investors perceive risk too narrowly as market volatility - the risk of
losing money. The eroding impact of inflation on a portfolio’s
purchasing power and failure to meet your investment goals are two
additional examples of risk. Identifying an asset mix that balances
potential risks with your investment objectives is key to a successful
risk management strategy.
of returns is manageable with appropriate portfolio diversification.
This can be achieved on a variety of levels, including asset class,
geographic region and individual securities. Investors using investment
funds or discretionary managed accounts can also diversify their
portfolio by incorporating a variety of portfolio managers with
different investment styles.
As you manage
your investment portfolio, you’ll want to make the right decisions for
your situation. Whatever your investment needs and preferences, your BMO
Nesbitt Burns Investment Advisor can provide you with the information,
tools and assistance you need to reach your goals. He or she will
monitor your portfolio, help you manage risk and guide your investments
through market ups and downs. For more information, please, contact Adam
Knight, Sean Gligor or Greg Jizmejian.