Stocks vs Bonds vs Cash Calculator
Try the calculator below >
The three main types of assets that you can invest in are stocks, bonds and cash. Cash investments typically pose the least risk, bonds a medium risk and stock the greatest risk. However, cash investments offer the least rewards while bonds and stocks have the potential for higher returns.
Asset Allocation and Diversification
Diversification simply means not putting all of your eggs in one basket. Asset allocation is the process of distributing your investments across the three main asset classes – stocks, bonds, cash – to moderate the ups and downs of the market. By diversifying your investments over all of the asset classes, you may lower your risk and improve your rate of return over time.
This financial calculator compares the growth of a Canadian stocks, bonds and cash using historical rates of return. Returns can be adjusted for inflation and management expense ratios (MERs).