People are often surprised when we say that successful investing does not mean you have to “beat the market.” Instead, successful investing is simply that which allows you to meet your financial goals.
Trying to hit “home runs” by picking hot stocks before they jump or timing market swings are activities more aligned with speculating than investing and may actually decrease your chances of meeting your goals. Ultimately, success is less about swinging for the fences and more about staying out of trouble.
Unfortunately, trouble can manifest itself in many ways. The most common troubles that can trip investors up are:
High and hidden fees
Canadian mutual funds have among the highest fees in the world – high fees detract from investment performance and over a long period of time can significantly erode your savings nest egg.
Lack of diversification