Financial investments: how to review their returns and risks

1. Clarify what you compare

Before comparing two results, ask for the chosen period, the included fee and the calculation method. An isolated number does not tell if the investment meets your need.

• The period and method of calculation
• Costs already deducted and those remaining to be paid
• The objective to be met by the investment

2. Read fees with result

The AMF explains that fees affect your final return. Gather the available documents and review all charges together: policy fees, investment fees, transaction charges and exit costs, as applicable.

• Documents presenting the costs
• The cost of the proposed operations
• The questions to ask my institution

3. Linking risk, horizon and availability

The potential for higher returns comes with risk. Check when and on what terms you can get your money back. The name of an account or policy does not describe the risks of its investments.

• The length of time I can immobilize this sum
• Conditions for the recovery of money
• The risks of the investments you actually hold

4. Review changes before taking action

Make a list of issues to be clarified before financial decisions: reason for the change, cost, delay and consequences to be verified. Gary can use this list to prepare a comprehensive discussion. This sheet does not recommend any purchase or sale and promises no improvement in performance.

Sources and scope

This sheet helps to prepare a discussion. It is neither an analysis of your situation nor a recommendation for investment.

• AMF — You have a capital to invest, what to do?
• AMF — Understanding risk, horizon and availability