Managed investing 101


Investing in stocks and bonds can seem a little overwhelming. It’s got a language all of its own and there’s a lot to learn. But there is a way to manage your investments that can leave you in the driver’s seat without taking a scary ride – it’s called managed investing. You choose an investment portfolio that meets your investing criteria and the broker’s system will automatically manage your investments for you. Yes, of course, you can still speak with a broker if you have any questions or you need some advice but it’s all about defining your investment criteria then letting the system work for you.

What is an investment portfolio?

It’s simply a collection of financial assets held by an investor or an institution. These assets could be cash, stocks, and bonds.

How many kinds of investment portfolios are there for you to try out?

There are five basic types for you to try out and, within each type, your collection of stocks and bonds can be quite different – in fact, as unique as you.

How do you choose the right investment portfolio for you?

And how do you know what stocks and bonds (asset allocation) to have in your portfolio? Well, that’s probably one of the most important decisions an investor can make and it’s an ongoing set of decisions.

When you’re choosing the investment portfolio that’s right for you, there are some things to consider:


  • Your current financial state – What is your net worth? What are your obligations today? How much do you have to invest?
  • Your current financial knowledge – Are you familiar with the market, the terminology and what it all means? Are you comfortable making investment decisions?
  • Your comfort level with risk – How much risk can you afford to take? How much money can you afford to risk? And, how much money can you afford to lose if a trade doesn’t go the way you hope?
  • The time you have to manage your portfolio – Does your career keep you really busy? Do you have a busy family life? How much time can you spend researching stocks and bonds because it does take time to understand the market?
    How involved do you want to be in every decision about your portfolio?
  • The speed that you want to see results from your investments – Are you willing to wait to meet a long-range objective or do you have short-term goals that you’d like to meet now?

It usually comes down to your goals, your timeframe, your current financial state, and your comfort with risk.

Are there fees for investment portfolios?

Yes, ordinarily, there’s a management fee, which is typically a percentage of the total annual value of your portfolio. It can be billed monthly, quarterly, or even yearly. There can be other administrative fees depending on the broker or financial institution providing the service. For example, if you need a certified cheque, there might be a fee to request it. Fees can also be charged depending on the types of trades that are being made in your account.

Types of investment portfolios

There’s an investment portfolio for every kind of investor, offered within the Managed investing simulator. Click on each type to read more:



Now, why not practice with the managed investing simulator. Learn more and register for the Managed investing simulator.