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, 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. ​​​​​​

For more information about RESP's and how to get started, visit ATB Prosper.