opportunity and inflation risks. Even

if the move is meant to be only

temporary, it may mean that the

portfolio will not achieve the growth

the investor requires. Tax implications

are also a consideration since short-

term solutions are generally taxed at

higher rates.

If short-term volatility concerns you,

remember that there are effective ways

for you to achieve the growth you need,

at a risk level you are comfortable with.

Here are a few options that balance the

risk and the returns required to meet

long-term investment goals.

Make sure your portfolio reflects your needs, not your fears

Investing

When equity markets are volatile, investors sometimes shift their investments into “safer” options, with the hope that they will experience less market volatility. However, investors should know that often these “safer” investments provide lower rates of return. Successful long-term investors know that focusing on the long term and investing in the right solutions should yield better results.

Short-term market events can

influence your decisions and

negatively affect your long-term

success. When investors focus only

on the short term, they sometimes

react by investing their retirement (or

other long-term) savings in a savings

account, guaranteed investment

certificate (GIC) or money market

mutual fund.

Short-term holdings play an important

role in a portfolio, providing security

and access to cash on short notice. But

when a short-term solution is used for

a long-term investment goal there are

risks that are not self-evident, such as

2 Investments Make sure your portfolio reflects your needs, not your fears

RBC Market Access GICsAlthough a GIC is generally thought of as

a short-term approach, there are specific

types of GICs that provide a longer-term

approach. RBC Market Access GICs™,

for example, are a unique solution

providing both growth potential and

principal protection. They enable you

to participate in the growth of

financial markets without the risk of

losing your principal.

Returns are linked to the performance

of one or more stock market indices

or mutual funds. If the underlying

investment goes up, your return is

based on the increase. If the return on

the underlying investment is negative,

100% of your principal is guaranteed.

There are four RBC Market Access GICs

to choose from:

> RBC Canadian Dividend Fund-Linked

GIC™, linked to a portfolio of high-

quality, dividend-paying stocks.

> RBC O’Shaughnessy International

Equity Fund-Linked GIC™, linked to

O’Shaughnessy’s disciplined approach

to international stock selection.

> RBC Canadian Market-Linked GIC®,

linked to the S&P/TSX 60 Index.

> RBC Global Market-Linked GIC®,

linked to a weighted basket of interna-

tional stock-market indices.

Portfolio solutionsRBC® portfolio solutions are ideal if

you do not have the time to manage

your portfolio or prefer to leave the

investment management decisions

to professionals.

RBC offers a range of portfolio

solutions to meet the needs of all types

of investors, from conservative to

growth-oriented. These professionally

managed, appropriately diversified and

regularly rebalanced portfolios keep your

investment aligned to your objectives

and always reflect the most current

thinking of RBC Asset Management®.

The next step — Getting your money working for youAn excellent way to take advantage of

stock market volatility is by investing

regularly with a preauthorized

contribution plan. With a preauthorized

contribution plan, the amount you

choose is automatically transferred from

your bank account to a mutual fund or

funds of your choice on a regular

5 years 15 years

$13,

802

$14,

319

$60,

310

$63,

392

$98,

389

$104

,185

$226

,706

$151

,798

$243

,994

$162

,014

$33,

159

$34,

617

It pays to invest regularly

Annually Monthly

0

$50,000

$100,000

$150,000

$200,000

$250,000

10 years 20 years 30 years25 years

When you invest regularly, your money starts working for you right away. Over the long term that makes a big difference. If you invest $200 every month, at an average annual rate of return of 7%, after 30 years you’ll have over $17,000 more than if you invested the same amount at the end of every year.

For the second consecutive year, RBC Asset Management Inc. has won the Lipper Fund Award for “Best

Overall Fund Group” in Canada. The prestigious Lipper Awards recognize funds that have excelled in delivering consistently strong, risk-adjusted performance relative to their peers.

Invest with confidence at RBC

The material in this publication is intended as a general source of information only, and should not be construed as offering specific tax, legal or investment advice. Every effort has been made to ensure that the material is correct at time of publication, but we cannot guarantee its accuracy or completeness. Interest rates, market conditions, tax rulings and other investment factors are subject to rapid change. Individuals should consult with their personal tax advisor, accountant, or legal professional before taking any action based upon the information contained in this Special Report.

Financial planning services and investment advice are provided by Royal Mutual Funds Inc., a member company under RBC Wealth Management. Royal Mutual Funds Inc., RBC Asset Management Inc., Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company are separate corporate entities, which are affiliated. Royal Mutual Funds Inc. is licensed as a financial services firm in the province of Quebec.

RBC Market Access GICs are offered by Royal Bank of Canada, Royal Trust Corporation of Canada and The Royal Trust Company. RBC Funds are offered by RBC Asset Management Inc. (RBC AM), an indirect, wholly owned subsidiary of RBC.

® Registered trademarks of Royal Bank of Canada. Used under licence. ©2008 Royal Bank of Canada.

™ Trademarks of Royal Bank of Canada.

70012 (06/2008)

schedule. This approach not only

ensures you pay yourself first, it also

allows you flexibility to change your

investing options as your personal

situation changes.

By investing regularly, you’re benefiting

from a strategy called dollar-cost averag-

ing — you buy more when the cost is low,

such as during times of uncertainty, and

less when the price is high. This helps

you take advantage of equity markets

even when the markets aren’t favourable.

An RBC advisor can help you set up a

regular purchase plan and help you

select the best investments for your

portfolio, based on your investment

objectives, time horizon and comfort

level with risk.

If you’d like more information about RBC

Market Access GICs, portfolio solutions or

preauthorized contributions, speak with

an RBC® advisor at any RBC branch, call

1-800 ROYAL®1-1 (1-800-769-2511) or

visit our website at www.rbcam.com.

3 Investments Make sure your portfolio reflects your needs, not your fears