Direct investing online isn’t just for day traders anymore — it can be a highly effective way to make your long-term investments work for you while saving a bundle on fees.
Jason Storsley, president and CEO of RBC Direct Investing, says the perception of online direct investing as a tool meant solely for quick-draw traders is a misconception when compared against the long list of refined tools it offers to long-term investors.
“While online direct investing is definitely well-suited towards active traders, increasingly it’s being seen as a great place for long-term investments. It has evolved far beyond just a space for active traders,” Storsley said.
RBC Direct Investing puts a slew of sophisticated research and management tools in the hands of investors, especially in the field of mutual funds — which Storsley says are often an ideal option for direct investors because they combine the self-guided decision making of direct investing with professionally vetted products.
“Mutual funds are key for investors interested in a diversified portfolio and for investors not interested in the micro-type decisions of which individual stock to buy, but rather in delegating to a professional to build an asset mix they’re comfortable with,” Storsley said.
Online tutorials through the RBC site (rbcroyalbank.com) complete with voiceovers will help you get up-to-speed on how to read stock quotes, how to use analysis tools and how to buy mutual funds online.
Whereas in the past, online brokers may have offered very rudimentary mutual fund options, direct investors with RBC have access to model portfolios, mutual fund packages already seeded with funds hand-picked by RBC and collected together based on their appropriateness to different investing goals. Each of the 19 different model portfolios is already diversified within itself and tailored to meet the needs of a particular type of investor.
“The experts at RBC have gone out with put together a basket of mutual funds, and they’ve done it for more conservative investors and more aggressive investors. We’re trying to cater to investors regardless of how much time they want to invest,” Storsley said.
For investors interested in doing their own legwork, RBC offers access to a wide swath of powerful tools, including independent research, performance indexes and analyses and a fully customizable search utility that allows investors to screen through the entire catalogue of available mutual funds to get find exactly the right mutual fund for each investor’s particular needs. With more than 1,000 mutual funds to pick from, investors can screen using parameters such as price, performance and type to get a list of the top 10 choices appropriate for them based on their choices.
Series D mutual fund options by RBC offer funds with strong performance for fees usually half the industry average, another strong choice for self-directed investors.
Depending on your particular investment goals, Storsley says fixed-income products like government or corporate bonds might be a good choice if you want to minimize volatility in your portfolio, or you might be interested in taking bolder steps. It all depends on your own personal goals and investment desires — just like any traditional investor, a direct investor has to ultimately be aware of what feels right for him or herself.
“A successful investor first understands that investing is about managing risk before managing returns. Make sure you understand yourself and how much risk you’re willing to handle,” Storsley said.
Online tools
Advanced online tools at RBC make self-directed, long-term investing a great option for saving money on fees while guiding your investments yourself.
• Have your pick of the litter: Model portfolios, pre-screened by RBC experts, can be an efficient and painless way to buy into an already-diversified portfolio of mutual funds that have a proven track record. RBC experts do the hard work; you pick the perfect fund.
• Find the golden needle in the haystack with one click: Despite the choice of more than 1,000 mutual funds, in seconds direct investors with RBC can screen down to just the five or 10 funds that make the most sense for themselves by screening funds through a wide range of criteria.
• Get tuned up: Spend a few minutes with an online tutorial at rbcroyal bank.com/oec and get a refresher on all things banking and investment related.
On the web
• For more on RBC Diret Investing, log on to www.rbcdirectinvesting.com.
