3 Investment Options in an Uncertain Market

3 min.

Are you wondering if you should rethink the way you invest and if it’s the right time to do so? Here are 3 options to consider in the current climate.

High Interest Savings Account (HISA)

The High Interest Savings Account (HISA) may be a good option for you if you prefer not to take risks with your savings.

Here’s why:

  • It has a potential for higher returns than a regular savings account. In addition, the latest interest rate hikes have had a positive impact the HISA.
  • It offers greater security than assets invested in the markets since earnings are guaranteed and cannot be affected by stock market fluctuations.
  • It improves the diversification of your portfolio.
  • No minimum investment is required to open a HISA and the funds can be withdrawn at any time and at no cost. These advantages make the HISA an ideal emergency fund for dealing with the unexpected.

For these reasons, the HISA is an excellent option for those who wish to put money aside while waiting for the right time to invest in the markets.

Guaranteed Interest Funds (GIFs)

With their guaranteed returns, Guaranteed Interest Funds (GIFs) offer the same type of security as the HISA. However, they are a more interesting option for those who would like to invest for a fixed term.

Here are some of their advantages:

  • Having also benefitted from rising interest rates, GIFs currently offer attractive rates for terms ranging from one month to ten years.
  • Their competitive returns make them a good alternative to bonds.
  • Unlike the HISA, whose rates may vary over time, GIF returns are fixed and guaranteed for the life of the contract.
  • Rates may prove to be more advantageous than those of the HISA depending on the amount and term of the chosen investment.
  • GIFs can be redeemed at any time. Unlike the HISA, however, a withdrawal made prior to the contract maturity date may result in a fee.

In addition, our GIFs and HISA come with all the benefits of segregated funds, such as possible creditor protection and quick settlement in the event of death.

To learn more, don’t hesitate to contact your advisor.

See GIF and HISA rates

Systematic savings

If you want to participate in the financial markets while limiting your risk of loss, one of the best strategies remains systematic savings. By regularly investing smaller amounts, you can:

  • Spread your risk over a longer period and therefore reduce the potential impact of market downturns on your total assets.
  • Capitalize on market fluctuations instead of weathering them since market downturns will allow you to buy when prices are lower.
  • Accumulate at a steady pace to take advantage of market opportunities as they arise.

Whatever strategy you decide to adopt, remember that the most important thing is to diversify your portfolio so you can take advantage of the potential of each asset type.

In fact, as you can see in this chart from J.P. Morgan’s Guide to the Markets*, it’s difficult to predict which assets will perform best year over year.

Performance by asset class

Need guidance? Contact your advisor today!

* Source: Guide to the Markets, JP Morgan, Q1 2023, page 61.

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