Amina and Sanjay are a young Canadian couple looking forward to buying their first home. They both have satisfying jobs and are financially savvy. Through Amina’s grandfather they were introduced to an advisor who told them about the First Home Savings Account (FHSA), and they think it’s a good way to save for a home.
An index fund is an investment fund that aims to provide returns similar to those of market benchmark. This is generally done by investing in the same securities (or a representative sample) as the target benchmark.
Although it can be tempting to put your investment goals aside to chase these returns, beware of FOMO, which can introduce an unreasonable level of risk in your portfolio.
Understanding the differences and similarities
Markets move in different directions at different times, generally called cycles. Different market cycles tend to favour one investment style over another. Understanding how growth and value investment styles differ and where they can work together will help demonstrate how they can both play an integral role in your equity portfolio construction.
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