There are a thousand ways to slice and dice an onion; there are also a lot of different strategies that people use to invest their money. Some may be more risky than others, but each has its place in the investing world, and can help you achieve your financial goals.
Top investment strategies in Canada focuses on investing in companies or assets that pay regular dividends. This provides you with a steady stream of income that can be reinvested into the underlying investments for potential capital gains, while also potentially providing tax benefits in Canada.
Growth investing focuses on identifying opportunities that have the potential to appreciate significantly in value over time. This can include equities in sectors like technology, healthcare, and renewable energy in Canada that are experiencing rapid revenue and earnings growth. It can also be more volatile than other investment strategies, and is typically used by investors seeking higher returns in pursuit of substantial long-term gains.
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Index investing involves using index funds or ETFs (exchange-traded funds) to track a specific market index. This helps you gain diversified stock market exposure with minimal effort, which can help reduce your individual stock risk and lead to long-term growth. Tax-efficient investing focuses on strategies that minimize the impact of taxes on your investments, allowing you to retain a larger percentage of your gains. It can involve leveraging investment accounts such as RRSPs and TFSAs, as well as understanding how various types of income are taxed.