Based on your risk profile and your values, your financial advisor will suggest products or solutions. You will be better prepared to accept or reject the investment solution your advisor recommends if you have a good understanding of the different strategies and types of responsible investment products offered on the capital markets. You can find a detailed description of these strategies on the Ethiquette website, and a table of RI products currently available that integrate the various strategies.
Here are some important questions you should ask your RI advisor when assessing whether the RI recommendations are appropriate:
If the recommended solution includes an RI product:
Also ask to consult the Fund Facts, which provides core information about the fund, the fees you will pay, the dealer’s remuneration and your rights (see an example on the AMF website http://www.lautorite.qc.ca/en/fund-facts-conso.html). For more detailed information, you can also consult the fund’s prospectus (simplified prospectus if it’s a mutual fund), which will give you detailed information about the issuer and the securities for sale. By reviewing the fund facts or the simplified prospectus, you will be better equipped to judge whether the investment suits you. You can assess whether the level of risk and potential return fits your investment needs and objectives. You will also find information about the responsible investment strategy followed by the fund manager, although you will often find more details on the RI strategies on the fund website than in the prospectus.