Canada’s economy has long been known for its exponential growth, but like any market, it is beginning to mature and level off. In cities like Toronto, you can see fewer development projects being launched. This is the perfect time to start looking into other investment opportunities.
Investing in Emerging Markets
One of the best ways to diversify your investment portfolio is by looking into opportunities in emerging markets. Asian countries, particularly China, show great economic growth these past several years, with no sign of maturing any time soon. The investment opportunities are also very lucrative, especially if you know how to keep your risks limited.
Investing in emerging markets can be done through fund managers and brokers. A good fund manager can help you spot the right opportunities to take on as well as advise you on how to manage your risks based on your investing style and pattern.
Recent studies show that investing in emerging markets such as India and China is also a good way to balance local investments. The expected yield can be as high as 40% p.a., allowing you to have more room to fine tune your portfolio. Combined funds are the best kind of investments in these markets.
Investing in the Financial Market
Another way to tap into new investment opportunities is by entering the financial market. The Canadian Dollar has been performing really well these past couple of years, creating plenty of investment opportunities you can benefit from. Even better, you can invest in foreign currencies without having to use Canadian Collar as your base currency.
Foreign exchange or forex offers high volatility. It allows investors to pursue high return in almost every situation. That said, the market is also tied to a high amount of risks.
When investing in the financial market, it is best to have a sufficient amount of margin for risk management. You can make profits whether the currency valuates or devaluates; all you need to do is enter the market at the right time and with the right position. With enough margins for risk management, tactics such as averaging and hedging can be used to reduce the high-risk of investing in foreign currencies to an acceptable level.
Tips on Getting Started
Just like making your first investment, there are a few things you need to keep in mind when exploring new investment opportunities:
- Know exactly what you are investing in before making any real commitment.
- Work with an experienced fund manager that has access to emerging markets and high quality investment funds for maximum results.
- Always compare risks and return before investing your money.
- Stay true to your investment goals. Investing in new markets may require you to formulate a new investment strategy, but that doesn’t mean you should forget about your investment goals altogether.
- Evaluate frequently and make adjustments. Investing is never a one-time deal. You need to keep up with the market in order to stay ahead and remain profitable regardless of the investments and investment tools you use to be successful.