Hi DigambarChahar,

I do not have your background, but if you wish to establish RESPs for your children, are new in the game and have the time constraint of until end Dec, then I would advise you to go the way of the chess instructor to neophytes in the game - i.e "when in doubt , push a pawn" suggesting that if the various options available are too complex or diversified for the time alloted then go with the 'safe bet'.

That means open up an RESP in a savings a/c ( as opposed to a chequing a/c), not even a GIC. PC Financial bank gives 4% return on money in their savings a/c (if more than $1,000- see http://www.banking.pcfinancial.ca/a/rates/savingsPlusAccountRate.page?refId=sidenav.
Once this is done before the year is out, you can avail of the 20% Govt grant and then at leisure decide what you wish to invest into- equity MF's or GICs or trust scholarships. Several including myself have opened dual a/cs putting some money into equity MFs and some into scholarship programs (like CET, Allianz, Global.. etc) thus giving a diversified portfolio.

Pramod has suggested you jump into the water immediately. I agree. Do open RESP a/cs asap, by opening up savings a/cs and THEN decide on the investments upon consultation with a financial planner or with your bank.Insist upon no load funds if you invest in MFs as per Iceberg.

If your financial planner shows you the appropriate andex chart, you will find that equities in the long run have provided better returns than GICs. Going forward anything is possible.There are also some guaranteed equity mutual funds out there.



Do you have PC financial in your area?

Quote:

---

Originally posted by Iceberg


Pramod,

You know better than me that no one can guarantee returns on a mutual fund. So to say that one 'would have much better returns' is misleading. While GIC's though have limited returns they are guaranteed. One vehicle to look at is GIC which is linked to a broader index like the TSX60 or financials or energy or a combination of a few. In these GIC's the minimum return ranges from 0 % to a max of 60 %.



.

---

Thanks to All replies ,suggestions and for time you took , I appreciate ,

Yday I went to bank Scotia & TD they give me the details about GIC which is 3% ;for MF the trend for couple of years is 8.4 % almost same for both banks.
I am planning to go with scotia bank and invest MF's .I tried to find Finacial planner in our community but I couldnt.
Any suggestion, recommendation , and comment are most welcome please,
Thanks again for continued help and advise,
Regards,
Digambar Chahar

Quote:

---

Originally posted by investpro

Hi DigambarChahar,

I do not have your background, but if you wish to establish RESPs for your children, are new in the game and have the time constraint of until end Dec, then I would advise you to go the way of the chess instructor to neophytes in the game - i.e "when in doubt , push a pawn" suggesting that if the various options available are too complex or diversified for the time alloted then go with the 'safe bet'.

That means open up an RESP in a savings a/c ( as opposed to a chequing a/c), not even a GIC. PC Financial bank gives 4% return on money in their savings a/c (if more than $1,000- see http://www.banking.pcfinancial.ca/a/rates/savingsPlusAccountRate.page?refId=sidenav.
Once this is done before the year is out, you can avail of the 20% Govt grant and then at leisure decide what you wish to invest into- equity MF's or GICs or trust scholarships. Several including myself have opened dual a/cs putting some money into equity MFs and some into scholarship programs (like CET, Allianz, Global.. etc) thus giving a diversified portfolio.

Pramod has suggested you jump into the water immediately. I agree. Do open RESP a/cs asap, by opening up savings a/cs and THEN decide on the investments upon consultation with a financial planner or with your bank.Insist upon no load funds if you invest in MFs as per Iceberg.

If your financial planner shows you the appropriate andex chart, you will find that equities in the long run have provided better returns than GICs. Going forward anything is possible.There are also some guaranteed equity mutual funds out there.



Do you have PC financial in your area?

---

Sounds good.

Ensure that the bank puts you into funds that have no back-end loads or DSC (deferred sales charge) schedule. These typically have higher management fees and will eat into your growth.

Just ask your bank that were you to pull out the money after a year or two or whatever time period to switch to another safer/less volatile vehicle -will there be any charges? There should be none. There was an article on this in The Star's Sunday publication. If I find it I will post it on the thread.

Hi Digam,

Looks like you did a good thing according to the forecast that follows

Breaking News from The Globe and Mail

Global fund managers expect a Goldilocks kind of year
ANGELA BARNES


Tuesday, December 19, 2006

Institutional investors have bought into the soft landing story and are positioning themselves for a year of global economic growth that, like the porridge in Goldilocks, is “not too hot, not too cold; just right,” according to the latest Merrill Lynch & Co. Inc. survey of global fund managers.

“The majority of the institutional investors on our panel believe that global economic growth will weaken in 2007 — as will corporate profits growth,” said David Bowers, independent consultant to Merrill Lynch. “Yet investors are convinced that the risk of a global economic recession is very low.”

Although 63 per cent of the respondents see the global economy weakening a little over the next 12 months, only 8 per cent say a global recession is either likely or very likely over that time frame.

Furthermore, they expect the global slowdown will bring economic activity back in line with the long-term trend, which will reduce the risk of inflation. They see global monetary policy as neither too stimulative nor restrictive, and nearly two-thirds think that short term interest rates will either be unchanged or lower a year from now.

But long-term rates remain a concern. “Fund managers are suggesting that if there is a cloud on 2007's horizon it could take the form of higher bond yields,” Mr. Bowers said. “It will be interesting to see how the U.S. housing market will handle an upward move in long-term rates.”

Fund managers also expect that world-wide profit growth will ease next year, with 57 per cent anticipating it will deteriorate slightly. Sixty-three per cent felt that way three months ago.

The majority of respondents think that corporate balance sheets are under-leveraged. But investors were divided on what companies should be doing with their cash flow. Forty-four per cent say they should return cash to shareholders through share buybacks or dividends, for example, while 41 per cent believe they should increase capital spending.

Not surprisingly given the benign economic outlook and the fact that fewer than four in 10 believe that world stock markets will be lower in six months' time, asset allocators continue to favour equities over bonds. Only 9 per cent are overweight bonds, while 63 per cent are overweight stocks.

A total of 210 managers, who oversee $713-billion (U.S.) in assets, participated in the global survey, which was conducted between Dec. 8 and 14; and 162 managers, who manage $383-billion in assets, took part in the regional surveys.

The link isttp://www.globeinvestor.com/servlet/story/RTGAM.20061219.wglobalfunds1219/GIStory/

I am asuming that you have chosen to invest in an equity MF.

Thanx your reply Iceberg. I will look into it.

I actually meant equity linked GICs and not funds, but looks like you caught on.