Dear Desi Members,
Hi , can anyone guide on how to start investing in stock or mutual funds from as little as 500 cads, how to go about it and whom to contact? I know as discussed earlier in this forum suggesting scripts for investing, without license for the same is not legal, so I am not asking for tips , only broad guidlines on where to begin , and how to park savings we generate.
Thanks Sanjeevam I have already ordered
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mor
Whenever you experience joy, peace, security, equanimity or purity, it is only because you are aligned with ALMIGHTY.
an option for investing in mutual funds...walk into your bank and say you want to speak their planner inorder to invest in mutual funds. I think the lowest unit costs around 500$ at most banks
for stocks...www.e-trade.ca is an option
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Recommended Services- Servicedomino.com
http://www.servicedomino.com
Location: INDIA (sometimes Canada)
Posted on: 21-12-04 14:59:14
Dear Jake3d,
I am also interested in stocks, and taled to CIBC and TD-Can Trust about the matual fund route. but there procedure and returns are not convincing.
I am ready to put in 2k to 3k in secondry market stocks. donot we have brokers and stock exchage ternibals and demat accounts in canada like in India??
Also, give us the kind of commisions and other transaction expences for stocks. In India these are less than 1% these days.
Enjoy Happiness..
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Enjoy Happiness -- Happy from India
Hi there
I guess every immigrant like you and me want to see our hard earn money grow. Believe me investing in GIC or keeping the money in bank does not help at all.
Example if you invest $100 in GIC @ 2.5% per annum.
By the end of the year it becomes $102.5. But all of us forget that on we have to pay taxes on the $2.5 interest that we recieved and also consider the 2.5% annual inflation.
So if you calculate with all those deductions you end up having only $98 with you( but people just look at the passbook/statment which says $102.5)
There are lots other good investments that one can get into, for better and safe returns.
If you need to know more feel free to email me at
have fun until then
Quote:
Orginally posted by sanrs
There are lots other good investments that one can get into, for better and safe returns.
If you need to know more feel free to email me at sanrs@hotmail.com
have fun until then
For the benefit of others on this forum can you please provide more details on investments which produce 'better and safer returns'. Also, whether these investments are guaranteed or not.
Regards
Daks
........I found this article on moneysense.ca................
Borrowing to invest
"Ask a planning expert" by David West
Question:
I am in my early 30s, my wife and I make six figures and have a substantial mortgage. I am being encouraged by my financial planner to borrow to invest. I am quite conservative in my approach to investing, but do recognize the virtues of leveraged investing. Do you agree with borrowing to invest? And if so, what is the best approach to take (e.g. segregated funds)?
Answer:
Your direct question asks whether I agree with borrowing to invest. Because I would never categorically rule it out — borrowing to invest does have its proper role — I therefore must say "Yes, I do agree the strategy has its merits." But lest you should take any comfort in that, let me quickly add that the circumstances need to be right to make the strategy appropriate. And based on what (little) I know of your circumstances, it's not the right strategy for you.
Let me take a different tack for a minute. You call your adviser a financial planner, and then speak of segregated funds. You may be using these terms loosely, but I get the impression that your adviser, whoever he or she is, specializes in something other than securities investment — maybe insurance, or mutual funds, or tax, or estate planning — and only advises on securities matters as a sideline to their main business.
I suggest you think over whether you might not want an adviser for your investments who specializes in investments; in other words, a full-time investment adviser at an investment dealer, not an insurance salesperson dealing investments on the side. Use the latter when you need insurance. But when it comes to your investments, you have the current and potential income to warrant a separate and specialized adviser — one who can go beyond mutual funds or segregated funds into actual stocks and bonds. So I suggest you consider that.
You may wonder why I brought that up. It's because the strategy you outlined is often touted by such part-timers. Probably their favorite pitch is for you to take out a mortgage on your home, use the money to buy mutual funds, sit back and get rich. Your house will grow in value, as will your investments. Your investments will more than pay your mortgage; there are tax benefits galore; it's too beautiful to resist!
Yeah, right, if everything works out as projected. Remember, leverage can enhance your losses just as easily as it can your gains. More easily, in fact, because you have to pay interest and commissions either way, win or lose.
The real truth behind the strategy you've had proposed to you is: the adviser makes more money on commissions, because you end up investing more than you can afford and the bank makes money off the loan. And what about you? You make money on the incremental investment only after the interest costs on the loan, and the commissions to the adviser, are covered. Investing is supposed to prioritize you making money, not your adviser making money. Under the circumstances you've outlined, this strategy appears more designed to make your adviser money.
In addition, you mention segregated funds, which are only available through licensed insurance salespersons. That's why I suspect you're not dealing with a professional investment adviser. Not a full-timer, anyways. See my article on segregated funds if you want to know my opinion about them.
Getting back to borrowing to invest, it does have its role. Its role is to adjust the risk of a portfolio upwards or downwards, but only for clients whose risk tolerance is greater than the market's overall risk. Roughly speaking, if a client's risk tolerance equates to a beta of 1.30 (that is, the client can handle as much risk as a 130% investment in the market offers), then a loan of 30% of the value of the client's portfolio might be in order. So borrowing to invest, properly done, really has nothing to do with mortgaging your house to hop up your investment exposure. You, in fact, should probably be doing the opposite: shouldn't you be trying to reduce your "substantial" mortgage?
I don't see any need for you to borrow to invest. If you want to leverage yourself, you don't need to borrow, there are lots of other ways to lever your investments. Try using warrants, or rights, or call options, or a margin account. And if you find those too risky for your tastes, you certainly have no business borrowing to invest. A good adviser will already know that.
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trying to find real persons
I have made a collection of investing links at http://www.geocities.com/balsmin/stock.html.....
also globeinvestor is a good beginning.
You need to devote time.
One thing is sure....
Do not depend on market advisors available dozen a dime. They do not really know much.. I am talking about majority.. there may n=ba a FEW good ones but here againg u have to take chance .....
and you know probability.. ...1/2 multiplied by 1/2 become too lowly 1/4
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trying to find real persons
