Personal Finance

What's a good low-risk investment for a beginner

  • Last Updated:
  • Mar 10th, 2015 8:08 am
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[OP]
Newbie
Oct 6, 2013
78 posts
2 upvotes
Toronto

What's a good low-risk investment for a beginner

I just graduated last year and thinking about start saving some money for my future, currently i put all my extra money on my saving, i'm not saying stock etc and earn big money, but i'm looking for something that has no or low risk (like a saving account) and will be beneficial for my future? I have been reading mutual funds and TFSA, are they good options?
7 replies
Deal Addict
Sep 24, 2007
3754 posts
1129 upvotes
Ontario
peoples trust has a tfsa savings account at 2.5% no risk

i have tangerine mutual fund that is med-high risk and in the last 3 months I'm only up about $100 (market seems to be going on a down turn this week).
Deal Addict
Feb 4, 2008
3132 posts
177 upvotes
monotonous wrote:
Mar 9th, 2015 10:35 pm
I just graduated last year and thinking about start saving some money for my future, currently i put all my extra money on my saving, i'm not saying stock etc and earn big money, but i'm looking for something that has no or low risk (like a saving account) and will be beneficial for my future? I have been reading mutual funds and TFSA, are they good options?
Rather then investing anything take the courses required for your CFP. You will then have a better handle of your financial life.
www.mortgagecalculatortoolkit.com

Do your mortgage math correctly!
Deal Addict
Dec 27, 2013
2525 posts
761 upvotes
Woodbridge
Short term and no risk would be a savings account, like the people's trust account deadice suggested.

A lot of people seem to agree that mutual funds are not really the best idea. The management fees of the accounts requires them to consistently outperform the market, which many do not do. A popular lower risk option might be an index fund, where you're essentially buying a part of every stock on an index and just riding the market as a whole. In contrast, a mutual fund will try to select which stocks will do well and buy those, which brings more risk. Index funds aren't risk free, as they follow the market, and the market goes up and down; however, if you're looking long term, the market always trends up. Canadian Couch Potato (http://canadiancouchpotato.com/) is a good place to look for more information in index funds.
Deal Addict
Jan 24, 2015
1021 posts
303 upvotes
Canadian in USA
monotonous wrote:
Mar 9th, 2015 10:35 pm
I just graduated last year and thinking about start saving some money for my future, currently i put all my extra money on my saving, i'm not saying stock etc and earn big money, but i'm looking for something that has no or low risk (like a saving account) and will be beneficial for my future? I have been reading mutual funds and TFSA, are they good options?
What are you saving for?

An eventual down payment on a house? A rainy day fund? Retirement?

If your savings goal is more than twenty years away I would recommend an stock index mutual fund. If less than ten years away a bond fund. In between, a mix.
Deal Addict
Jan 15, 2009
1031 posts
356 upvotes
Just north.
Visit the sites in my signature if you're interested in learning to invest in indices. You can put money into GIC, but you risk losing purchasing power to inflation, or worst yet, running out of money in retirement.
Deal Fanatic
Mar 24, 2008
5718 posts
1835 upvotes
Toronto
deadice wrote:
Mar 9th, 2015 10:48 pm
...
i have tangerine mutual fund that is med-high risk and in the last 3 months I'm only up about $100 (market seems to be going on a down turn this week).
Trick question: If you were new to investing (accumulation phase), would you want the price of equities to be higher or lower?

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