Money Canada
Investing

Investing: Simplify your path to building wealth

Robb Engen Author
Tyler Wade Personal finance content strategist & writer

From traditional options like stocks, bonds, and ETFs to alternatives like gold, crypto, and REITs, each investment type offers unique opportunities and risks.

While we adhere to strict editorial guidelines, partners on this page may provide us earnings.

This is the hub of our investing content. From this page, you can browse to various products and guides that will simplify your investment journey. 

If you want to start investing, read our guide on how to invest money with the best investments in Canada that discusses the types of investments and the investment vehicles (e.g. RRSP, TFSA, etc.) available/

If you're brand new, I recommend reading our investing for beginners guide first that discusses setting goals, knowing your risk tolerance and more. 

Understanding the wide world of investments is the first step toward making confident financial decisions

Whether you're planning for retirement, exploring automated strategies with robo-advisors, or learning how to choose a financial advisor, a solid grasp of the basics empowers smarter investing. Explore some of our more popular guides to help you on your investing journey.

Investing basics | Investing guides and where to start investing

Investors who start early might be more likely to catch that proverbial "early bird worm", and grow their earnings enough to lead a comfortable lifestyle. If you’re ready to invest, the good news is that getting started is simpler and less expensive than ever. And with the right guidance, you could be well on your way to catching that worm.

Before you invest, it’s important to understand your willingness and ability to accept risk, your investment time horizon, and your objectives. Use this questionnaire to gain insights into your investor profile. Please note this is for informational purposes only and not a substitute for professional financial advice.

Investment knowledge

A) Limited (I am new to investing).
B) Moderate (I understand basic investment concepts).
C) Advanced (I have extensive knowledge of various investments and market dynamics).

Financial situation

A) Less than $50,000.
B) $50,000–$100,000.
C) More than $100,000.
A) Very stable (consistent income and savings).
B) Somewhat stable (occasional fluctuations in income or expenses).
C) Unstable (frequent financial challenges).

Investment time horizon

A) Less than 3 years.
B) 3–10 years.
C) More than 10 years.
A) Safety and capital preservation.
B) Moderate growth over time.
C) Long-term growth with high potential returns.

Risk tolerance

A) I would sell immediately to avoid further losses.
B) I would wait and see if the market recovers.
C) I would invest more to take advantage of lower prices.

Investment objectives

A) Generating regular income from investments.
B) Balancing income and growth over time.
C) Maximizing long-term capital appreciation.

Start with the big picture—what are you investing for? Retirement, a home, financial freedom? Define your timeline:

  • Start with the big picture — what are you investing for? Retirement, a home, financial freedom? Define your timeline: short-term (1–3 years), medium-term (3–10 years), or long-term (10+ years).
  • Match your strategy to your goal — stocks and ETFs for long-term growth, bonds or cash for stability.
  • Be specific: instead of just “saving for retirement,” aim for “$1 million by age 65.”

Then, check in regularly, adjust as needed, and stay consistent. 

Use our investment growth simulator

Account type Why invest in it?
RRSP (Registered Retirement Savings Plan) Tax-deferred growth and tax deduction on contributions; ideal for retirement savings.
TFSA (Tax-Free Savings Account) Tax-free growth and withdrawals; great for general investing and major purchases.
RESP (Registered Education Savings Plan) Government grants and tax-deferred growth; designed for a child’s post-secondary education.
FHSA (First Home Savings Account) Tax-free withdrawals for a first home purchase; combines benefits of RRSP and TFSA.
LIRA (Locked-In Retirement Account) Holds locked-in pension funds from a former employer; helps fund retirement later.
RDSP (Registered Disability Savings Plan) Designed for individuals with disabilities; government grants can significantly boost savings.
Non-Registered Investment Account No contribution limits and no withdrawal restrictions; suitable for flexible investing.

Related read

Investment account types in Canada - Get more details and a deeper dive into each one.

  • Growth Investing

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    Growth investing focuses on companies expected to expand rapidly in revenue, earnings, or market share. Investors seek stocks with high potential, often in technology or emerging industries, prioritizing long-term capital appreciation over dividends. While these stocks can offer substantial returns, they typically come with higher volatility and risk.i

  • Value investing

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    Value investing involves finding stocks that appear undervalued compared to their intrinsic worth, often trading at lower price-to-earnings (P/E) or price-to-book (P/B) ratios. Investors look for solid businesses with strong fundamentals but temporarily depressed stock prices due to market fluctuations or short-term setbacks. This strategy aims for steady, long-term gains as the market eventually recognizes the stock’s true value.

  • Active investing

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    Active investing involves buying and selling securities frequently to outperform the market. Investors—or fund managers—analyze trends, company performance, and economic indicators to make strategic decisions, often using stock picking or market timing. While this approach can lead to high returns, it requires extensive research, time, and often comes with higher fees and trading costs.

    Related read: Active vs passive investing in Canada

  • Passive investing

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    Passive investing focuses on long-term market growth by holding a diversified portfolio, often through index funds or ETFs. Instead of trying to beat the market, investors aim to match its returns with minimal trading and lower fees. This strategy is cost-effective, requires less time, and historically outperforms most active strategies over the long run.

    Related read: Passive investing strategy

  • Couch potato investing

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    Couch potato investing is a simple, low-maintenance strategy that uses a mix of low-cost index funds or ETFs to build a diversified portfolio. Investors set an asset allocation—often a split between stocks and bonds—and rebalance occasionally, avoiding frequent trading or market timing. This passive approach minimizes fees, reduces stress, and historically delivers strong long-term returns with minimal effort.

    Go deeper: Couch potato investing

Robo advisors | guides and where to start investing

Robo advisors are specialized platforms that rely on technology and algorithms to help automate your investments. You put money in and the robot buys and sells stocks, ETFs, and more on your behalf as well as rebalancing your portfolio, managing currency conversions and all based on your risk tolerance. 

They’re generally a cheaper option than an actively-managed, full-service portfolio. With most robo advisors in Canada, you're paying 0.40% to 0.50% of your investments (much better than 2% to 3% with a financial advisor).

But with that low cost comes little to no human interaction. Those seeking personalized service and investing advice from a person might not find what they’re looking for with a robo-advisor.

Related: Best robo advisors in Canada

Some of our favourite robo advisors

Wealthsimple Moka Justwealth
Wealthsimple logo Moka logo Justwealth logo
◦ Low fees with no account minimums
◦ Hands-off investing with automatic rebalancing
◦ Socially responsible and Halal investment options 		◦ Round-up spare change for effortless investing
◦ No minimum investment to start
◦ Automated savings with goal-based investing 		◦ Personalized portfolios with expert management
◦ Great for RESPs and goal-based investing
◦ Low-cost, tax-efficient investment strategies
Wealthsimple review Moka review Justwealth review
Visit Wealthsimple Visit Moka Visit Justwealth

How to invest on your own

DIY investing puts you in control.

With an online brokerage, you can buy and sell stocks, ETFs, and other assets without paying for professional management. Start by choosing a brokerage with low fees and the right tools for your needs. Learn the basics—like how to place orders, research investments, and manage risk. Stay disciplined, think long term, and keep emotions in check.

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Investment Goal Calculator

What will it take to reach your investment goal? Use this investment goal calculator to determine how much your investment might grow before taxes, after taxes and after taxes and inflation. It will also provide suggestions on what to change if your plan doesn't look like it will meet your investment goal.

© Wise Publishing, Inc. | by: Money.ca ™

Information and interactive calculators are made available to you only as self-help tools for your independent use and are not intended to provide investment or tax advice. We cannot and do not guarantee their applicability or accuracy in regards to your individual circumstances. All examples are hypothetical and are for illustrative purposes. We encourage you to seek personalized advice from qualified professionals regarding all personal finance issues.

Ask the eight ball

Want to learn more about the magical world of investing? Shake the sphere for eight financial facts.

For fun investing facts

FAQ

  • Is it better to invest a lump sum or space out your contributions?

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    It’s best to invest a lump sum immediately. Immediate lump-sum investing beat dollar-cost averaging about two-thirds of the time. Staying invested for a longer time improves the likelihood of capturing positive market returns. Investors will gain exposure to markets as soon as possible. If you don't want to invest it all at once, design a systematic approach to invest smaller portions at regular intervals, or adjust your asset allocation towards a more conservative portfolio.

  • Should you invest when markets are at an all-time high?

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    Time in the market is better than timing the market. Investors with a long-time horizon should confidently ignore market conditions and stick to their investment plan. The best approach is to invest for the long term in a risk-appropriate portfolio. Stay invested and contribute regularly, regardless of market conditions (such as new highs or lows).

  • Could borrowing to invest be a good idea?

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    Borrowing to invest can be beneficial but it's best to use this tactic as a young investor. Investors in their 20s and 30s should consider using 2:1 leverage (e.g. invest $20,000 total by using $10,000 of your own money and $10,000 from a loan) to increase their stock exposure until a target level of investment is achieved. This approach uses time diversification to enhance retirement savings outcomes with less risk.

  • Should you stick with Canadian stocks or go for global investments?

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    Diversifying your investments across the globe is important, but some home country bias is reasonable because it actually reduces volatility, fees, and taxes. Allocating 20-30% of your equity portfolio to Canadian stocks is ideal for lowering overall portfolio volatility, lowering fees and taxes, and feeling good about your portfolio when Canadian stocks are performing well.

  • Are business loans a form of allowable business investment loss (ABIL)?

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    Not all business loans qualify as an Allowable Business Investment Loss (ABIL). To be eligible, the loan must be made to a Canadian-Controlled Private Corporation (CCPC) engaged in an active business, become uncollectible, and be an investment in shares or funding, not a standard loan. If eligible, 50% of the loss is deductible against all income.

  • What is the best investment for beginners?

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    The best investment for beginners is a broad-market index fund or ETF like the S&P 500 or a Canadian all-in-one ETF. These offer instant diversification, low fees, and steady long-term growth. Robo-advisors are also great for hands-off investing, automatically managing a portfolio based on your risk tolerance and goals.

  • How much should I invest monthly?

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    A good rule of thumb is to invest 10-20% of your income, but even small amounts matter. If you’re just starting, $50 to $100 per month in a TFSA or RRSP can build wealth over time. The key is consistency—automate contributions and increase them as your income grows.

  • Can I invest with no money?

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    Yes! Many investing platforms offer commission-free trades and fractional shares, letting you start with just a few dollars. Apps like Wealthsimple Trade allow you to buy small portions of stocks or ETFs, and some robo-advisors offer $0 account minimums so you can invest as little as you want.

Robb Engen Author

Robb Engen is a leading expert in the personal finance realm of Canada and is also the co-founder of Boomer & Echo, an award-winning personal finance blog.

Tyler Wade Personal finance content strategist & writer

Tyler Wade has worked in personal finance for over 5 years writing for brands like Ratehub, Forbes, KOHO, and now Money.ca.

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