“Is it better to have a mix of mutual funds and GICs for retirement? Or just mutual funds?”
Submitted by: Anne H.
Thank you for your question to Re:Investing. Diversification is a way to try to reduce the risk of your portfolio by choosing a mix of investments. The key to diversification is to not put everyone in one investment. Your overall investment portfolio should match your risk tolerance, but each investment may have different characteristics, to minimize overall risk.
Mutual funds can provide built-in diversification. Here are four reasons investors may decide to choose mutual funds. Guaranteed investment certificates (GICs) are considered one of the safest ways to invest and often form part of an investor’s portfolio. Learn more about GIC basics and risks of GICs.
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