Get Acquainted with Investing Basics
Put your money to work
Investing might seem complicated, but behind all of its very specific terminology, it simply means using money you already have to help grow your wealth. Whether you’re looking to buy a house, take a vacation, plan your wedding, or make sure you can retire comfortably, investing can help you earn more.
Quick facts about investing
Funding your investments
Some types of investments at TD, like most mutual funds, can start with as little as $100, while others, like GICs, can start at $500
Accessing your investments
Products like savings accounts can offer you access to your funds at any time, while non-cashable GICs lock your money in for a set period
How much can you make
While many GIC investments have a guaranteed rate of return, others have returns based upon stock market returns, but may have higher growth opportunities
Types of investment products
Depending on your financial goals, and how quickly you want to reach them, there are lots of investment types to choose from.
- GICs :
A way to make sure your initial investment stays safe. You can also choose to guarantee your rate of return.
- Mutual Funds:
Typically hold a variety of investments like stocks and/or bonds. Mutual funds are professionally managed.
- Savings Accounts:
Savings accounts are convenient ways to earn.
- Registered Plans:
These are tax-advantaged savings plans to help your financial security for retirement, education and disability.
- Precious Metals:
A way to diversify your portfolio with an investment that's recognized around the world.
Learn the terminology
- Principal: The amount of your original investment. If you’ve invested $1,000, but after five years it has grown to $1,500, that original $1,000 counts as your principal. Any growth on top of that counts as your earnings.
- Rate of Return: The amount that your investments have changed in value over a specific amount of time, shown as a percentage of your original investment or principal.
- Risk: The chance that you might lose some or all of your principal. Often, riskier investments have a greater potential rate of return, but there are investment products that are lower- or no-risk.
- Diversification: A strategy that mixes a few different types of investment products or asset classes together. Having a variety can be a good way to try to maximize your return while potentially lowering risk.