Your investment strategy combines three main objectives: steady returns, current income and moderate capital growth. To achieve this, you invest primarily in fixed-income instruments while also taking advantage of the growth potential of equities.
- Non-Redeemable GICs
- Bond and dividend funds
- Government, municipal and corporate bonds
- Dividend funds
- Strip coupons
With the exception of GICs, the return on these securities is affected by changes in interest rates if they are redeemed before maturity. Spreading out maturities of GICs over time stabilizes your interest income and gives you regular access to cash if you need it.
- Equity fund
- Variable Yield GICs
- Corporate shares
- Index-linked funds
- Specialty funds
The risk level for this class varies considerably depending on the type of investments you select. For example, corporate shares and index-linked funds represent a moderate risk while shares of small-cap companies or funds specializing in a specific economic sector entail a much higher risk.
Although foreign investments have the same features as those available here in Canada, their return is also influenced by the Canadian dollar's performance compared to other currencies. Geographic diversification lets you take advantage of the differing growth phases of various countries and also allows you to benefit from a greater potential return while reducing the risk level of your portfolio.
This simulation provides estimations only and does not involve the responsability of the National Bank or its affiliates in any way.