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The perils of chasing investment performance

History shows us that the relative performance of various asset categories changes from year to year. More importantly, these changes are not predictable. That’s why an investor’s biggest allies are staying invested and diversifying according to their comfort level with market volatility.

The chart shows that, in many instances, the top-performing asset category changes every year. As well, asset categories that are among the best one year could be among the worst the next.

By diversifying across different asset classes and investment styles, investors can offset risk and increase portfolio returns by balancing exposure in both positive and negative market environments.

Investment products and services are offered through Investors Group Financial Services Inc. (in Québec, a Financial Services firm) and Investors Group Securities Inc. (in Québec, a firm in Financial Planning). Investors Group Securities Inc. is a member of the Canadian Investor Protection Fund.

Written and published by Investors Group as a general source of information only. It is not intended as a solicitation to buy or sell specific investments, nor is it intended to provide tax, legal or investment advice. Readers should seek advice on their specific circumstances from an Investors Group Consultant.

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“The perils of chasing investment performance” © Investors Group Inc. 2010