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TD Managed Assets Program (TD MAP)

TD MAP Basics



The Wisdom of Diversification

When you invest, it’s wise to spread your money across a number of investments – that way you’re not putting all your eggs in one basket. It’s known as portfolio “diversification”. When you diversify your investments, you’re well-positioned to take advantage of upturns in the market and better protected through downturns.

Graph showing Two approaches to investing $1000 each year from 1986 to 2005(1). Investment is worth $49,289 by investing in Previous Year's Winning Index. Investment is worth $57,488 by investing in Balanced Portfolio(2).

Year after year, it is hard to predict the top performers. As the graph illustrates, chasing the previous year’s winning index does not guarantee higher returns. The balanced portfolio outperformed by nearly 17 percent over the long run.

Portfolio diversification across a number of asset classes allows a portfolio to benefit from each year’s top performers, while decreasing a portfolio’s overall risk.


Source: Ibbotson EnCorr, TDAM

1$1,000 (Canadian dollars) invested at the beginning of each year in Balanced Portfolio and the previous year’s winning index. Excludes Scotia Capital 91 Day T-Bill Index. Over the long-term, a balanced portfolio can outperform a strategy of chasing returns. Relative performance may vary over shorter periods of time.

2Balanced Portfolio based on Balanced Growth Investor Profile: 40% Scotia Capital Universe Bond Index, 15% S&P/TSX Composite Total Return Index, 24% S&P 500 Index C$, 21% MSCI EAFE C$. Excludes Scotia Capital 91 Day T-Bill Index. Rebalanced monthly.

Winning indices from 1986 to 2005 are as follows: MSCI EAFE C$ (1986 to 1988, 1993, 1994), Scotia Capital Universe Bond Index (1990, 2000 to 2002), S&P/TSX Composite Total Return Index (1996, 1999, 2003 to 2005), S&P 500 Index C$ (1989, 1991, 1992, 1995, 1997, 1998)

The graph is used for illustrative purposes only and does not reflect future values or future performance of any fund or portfolio. The article is not intended to provide individual financial, legal, tax or investment advice. For information purposes only. The chart is used for illustrative purposes only and is not intended to reflect future values or future performance of any fund. Particular investment or trading strategies should be evaluated relative to each individual’s objectives. TD Asset Management Inc. (“TDAM”), The Toronto-Dominion Bank and its affiliates and related entities are not liable for any errors or omissions in the information or for any losses or damages suffered.

TD MAP offers the portfolio diversification you need to meet your goals in a single investment. Each TD MAP Portfolio is comprised of a mix of mutual funds – including domestic and foreign fixed income and equity funds. Every Portfolio is professionally designed by a Portfolio Manager to achieve a particular set of objectives. So if you’re a conservative investor, aggressive, or somewhere in between, there’s a choice of TD MAP portfolios for you.


Find out more about diversification and other features of the TD MAP program: