International Diversification

Investing internationally can help you manage risk through greater diversification. And it may provide you with opportunities for growth, enhancing your portfolio's long-term return potential.

Why diversify internationally?

• Canada represents less than 4% of total global equity markets ^[1] .  There's plenty of opportunity for diversification and growth beyond Canada's borders.
• Historically, international markets have not moved in tandem with the Canadian market. So when the Canadian market is in a downturn, investments from other parts of the world may be on their way up
• With international diversification, you have the opportunity to gain greater growth potential while possibly reducing risk

How to access international markets

• One of the best ways to invest internationally is through mutual funds that invest in international securities. Mutual funds offer a degree of diversification that few people can hope to replicate on their own. And professional portfolio managers have the experience and resources required to effectively navigate international markets

Term investment products also provide access to international markets through products like international or global Index-linked GICs. GICs offer the combined benefit of principal protection and enhanced return potential when held until maturity.

Things you can do:

• Locate a Financial Planner, Investment and Retirement Planning near you to put a personalized plan together for your long and short term goals.
  

[1] Source: BMO Mutual Funds