Investing is one of the most effective ways to grow your money over time. Whether you're saving for retirement, a child’s education, or a major life goal, choosing the right investment products can help you get there.
There are five main types of investments—called asset classes. Each one works differently, comes with its own risks, and suits different financial goals. Some offer steady growth, while others carry more risk but may deliver higher returns.
Understanding how each type works can help you make confident decisions and build a plan that fits your life.
These are low-risk investments that give you quick access to your money. They’re great for short-term goals or keeping part of your portfolio stable.
2. Fixed Income Securities (Bonds)
Bonds are like loans—you lend money to a government or company, and they pay you interest. These are generally less risky than stocks and offer steady returns.
When you buy stocks, you own a piece of a company. Stocks can offer higher returns, but they also come with more risk and price changes.
These let you pool your money with other investors to buy a mix of assets. They’re managed by professionals and offer built-in diversification.
These include complex products like hedge funds or leveraged ETFs. They may offer higher returns but come with greater risk and are best for experienced investors.
Each investment type:
Earns money in its own way - through interest, dividends or capital gains
Has different levels of risk and complexity
Comes with its own fees and costs
May be taxed differently depending on how and where you hold it. For example, holding investments inside a registered investment account, like an RRSP, TFSA, or RESP, can affect when and how much tax you pay.