This is generally the safest category of investment. It includes: savings accounts, treasury bills, Canada Savings Bonds or money market mutual funds. Money is accessible at all times. There are regular interest or dividend payments. There is a low return for money invested (e.g. low interest rates) but the principal is always secure. The disadvantage of these types of investments is that you could lose income if the inflation rate is higher than the interest rate you are earning.

These offer higher returns than security-oriented investments. They provide a source of constant investment income that remains the same over time. Some examples are: term deposits, guaranteed investment certificates (GICs), corporate bonds and income funds.

This is the riskiest category of investment, particularly over the short term, but can offer the greatest possibility for high returns in the long run. These investments will likely rise in value over time and are good for those investors who do not need the money right away. Examples are: Canadian and international stocks, real estate and equity mutual funds.