Are you a savvy investor?



Take the test! Answer these 5 questions and also learn some good investment practices.

1. I make my investment decisions based on:

  • a) What my family and friends have to say.
  • b) The advice of a financial advisor or planner.

b) Whether they manage their own accounts or have professional help, savvy investors know that it's best to turn to their financial advisor or planner for advice. Research shows that people who have a financial advisor have healthier finances1. Ask questions and know where you're investing your money.


  • All too often, people don’t know what their investor profile is, or they make investments that don’t make sense for their goals. The result? Their investments depend entirely on their own knowledge. You can build a solid base for your investments by meeting with your advisor. They’ll help you determine your profile and find products that are right for you.
  • Do you love investing? Do you know something about finances? There are thousands of products to choose from! Do your own research on investments that may fit your investor profile.

2. In my investment portfolio...

  • a) All my investments are focused in one activity sector with excellent returns.
  • b) I have a bit of everything. I don't take risks.
  • c) I've made choices that make sense for my objectives and investor profile.

c) Savvy investors keep their goals and comfort level in mind. Diversifying your investments reduces your portfolio’s volatility. You should have different types of investments, in various sectors and countries, and in a number of asset classes.


  • It's impossible to predict which investments will perform the best. Past performance may not be indicative of future results.
  • Certain investment products, such as segregated funds, let you benefit from the return potential of the stock markets, even if you don’t have a lot of money to invest.
  • Do your homework before you start investing.

3. By diversifying your investments, you increase your chances of losing money.

  • True or false?



  • Don't put all your eggs in one basket! To increase the rate of return on your investments, you should build a portfolio with different types of investments, each with different characteristics that meet your needs and make sense for your investor profile.
  • Diversification is good, but don’t be too extreme. If you invest in too many different funds, or with too many different representatives, you could risk spreading your investments too thin. If you don’t look at your investments as a whole, you might invest in the same product several times, making your investment strategy less effective.

4. When I invest in the stock market, I'm usually...

  • a) Impulsive: I sell when the price starts to dip.
  • b) Patient: Regardless of market fluctuations, I don't change my strategy.

b) Savvy investors control their impulses and stick to their long-term investment strategy in order to reach their goals.


  • Although it can be stressful, market volatility is part of investing. It's easy to panic as the markets fluctuate, but don't forget the golden rule of investing: returns are made over time. That is why it's important to have the guidance and support of a professional who knows when is the best time to act.
  • It's often immediately after a correction that markets perform best. If you're not investing during these times, you may be missing out.
  • On the flip side, too much optimism and confidence could also lead to poor decisions. And that's why it's important to stick to your strategy and investor profile.

5. When I retire...

  • a) My portfolio will be invested according to my new needs so that my money continues to grow.
  • b) It's no longer the time to invest. I will let my money sit in my account.

a) Continuing to invest will help you make the most of your retirement savings, so they last as long as possible.


  • Your portfolio’s returns are influenced by the economy and current interest rates. An investor profile that takes your new needs into account will help you find the right strategy and level of diversification for you. Your portfolio should have the return potential of growth securities versus short-term investments or fixed-income securities.
  • By determining your portfolio withdrawal strategy, you'll establish your short- and long-term investment strategy. There are different stages of retirement, and some will be more active than others. Your investments should be chosen to meet your needs.

Do you have questions about investing? Write to us for personalized advice from our representatives.

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1. Online survey conducted by SOM, September 2013.