Canada is a premiere destination for global investors. It’s one of the safest destinations in the world. There are many reasons why investors flock to Canada. For one, this is considered to be one of the richest countries worldwide with its abundant natural resources which show in its GDP of $1.6 trillion in 2016. The country is also known for its strong alliance with the United States which has its advantages in line with investment opportunities.
The benefits of investing in Canada are the following:
- Stable rate of inflation. Canada has an ideal monetary policy in place with interest rates capped at 1.0% and with very stable inflation rates.
- Rich in natural resources. Canada boasts of rich natural resources specifically crude oil and precious metals.
- Minimal budget deficit. In comparison to the United States with 9.8%, Canada has only a deficit of 2.1% in 2010. This is a relatively good number as compared to their neighboring Asian and European countries.
There are multitudes of options to choose from when you want to grow your investments in Canada. You will have to determine your goals and also your investor profile to know your appetite for risk and if you want to invest for long-term or short-term.
Here’s how you can invest your money in Canada:
- Mutual Funds. If you are looking for a more stable and low-risk type of investment, then this is an excellent choice in diversifying your portfolio. You actually get more out of your investments in the form of savings especially if you invest for long term. This is considered less risky as compared to putting your money in the stock market. With this type of investment, the manager selects the companies that will be included in your fund. In this way, your money is spread out in different companies so you get to leverage and minimize risks of loss.
- Principal-Protected Investments. If you want to put your money on a safe investment with guaranteed returns then this is the right investment vehicle for you. For an investor with a low appetite for risk, this instrument protects your money from the fluctuations in the stocks market but which provides you maximized revenue potential. Deposit noted, guaranteed investment certificates, and fixed rate of return re examples of this type of investment.
- Exchange Traded Funds. This works similarly with mutual funds however, the only difference is that it is traded like stock and has low fees incurred in managing your portfolio. This is also very simple to manage because you can monitor and then buy or sell depending on market behavior.
There are aggressive investors who choose to invest their money directly in the stock market. There are however taxes involved in these investments which you would need to evaluate before jumping the gun. Canada offers many investors different investment opportunities especially with its robust economy that gained the confidence of many investors around the world. Whether you want to play it safe or you want to dare risk it all, Canada is one of the best countries to invest in with your hard-earned money.