Is there any risk involved with investing in an RESP?

September 8, 2017 ATB Financial

Like any investment, there can be some level of risk involved in investing in an RESP. The good news is that you can choose the level of risk that you’re comfortable with.

How aggressive should my RESP investment portfolio be?

If you’re able to start investing in an RESP when your child is very young, it might make sense for you to invest in more aggressive investments since you’ve got time on your side. On the other hand, the length of time that you have for any RESP to grow is relatively short, so you may want to choose something more conservative. Typically though, a balance within your portfolio is a good idea, or an approach that moves from aggressive to non-aggressive in later years. It depends on what level of risk you’re comfortable with, and how much you’re able to contribute. Ensuring your investments are diversified is a great way of reducing risk. Investing in a mutual fund is a cost effective way to diversify your investments, while also having access to professional investment management.

How do I know what investments to choose when opening an RESP?

If all this investment talk is getting confusing, don’t worry, we’re here to help! If you’d like to talk to someone over the phone or set up a time to chat in person with a financial advisor, give us a call. We can walk you through portfolio suggestions for your RESP and tailor it to your risk tolerance and preferences. So even if you’ve never invested before, you can make the right choices for your family and your RESP. ​​​​​​

Previous Article
Maximize your RESP contributions
Maximize your RESP contributions

Take advantage of the government grant that matches up to 20% on your contributions to an RESP and learn ab...

Next Article
How to start an RESP if you are not the primary caregiver
How to start an RESP if you are not the primary caregiver

How to start an RESP for a child when you are not the primary caregiver.