Not Sure Where to Start with Your TFSA Investments? Start Here.

In the last article, I asked you to think about how you would invest your TFSA for the long term.

Would you go all-in on stocks? Stick with mutual funds? Mix it up with ETFs?

Let’s now dive into some practical strategies—especially for those who are new to investing.

If you’re just getting started and not into researching investments…

Let’s face it—not everyone wants to spend hours reading about stocks or figuring out which ETF to pick. If that sounds like you, mutual funds are a solid starting point.

In fact, many employers offer mutual funds through workplace savings plans. These come in different risk levels—low, medium, high—so you can choose one that suits your comfort zone.

Quick tip: If you’re under 30 and just starting your career, time is on your side. You can afford to take on more risk now, because you’ve got decades ahead to ride out market bumps. A high-risk mutual fund could be a good fit. As you grow older, it makes sense to shift toward lower-risk investments gradually.

But what if you do know a bit about investing?

Great! If you understand the basics of stocks, ETFs, and mutual funds, then in my opinion, you should consider building a basket that includes all three.

How much you put into each one depends on two things:

• Your knowledge level
• Your risk appetite

Don’t have time to pick individual stocks? No problem—go for ETFs.

ETFs are a great middle-ground. They’re cost-effective, easy to access, and give you exposure to a group of companies in one shot.

For example, some ETFs track the S&P 500 or even specific groups like FANGMA (Facebook, Amazon, Netflix, Google, Microsoft, Apple). If you believe these tech giants will continue to grow, you can invest in all of them at once through an ETF.

➡️ A good example is TECH.B—is a FANGMA ETF that tracks big U.S. tech companies.
Yes, they’re U.S. companies, but as a Canadian, you can buy ETFs that follow U.S. markets. Pretty cool, right? 

Want to go one step further?

If you enjoy researching and have the time, you can definitely add individual stocks to your TFSA as well. Pick companies you believe in and understand.

And finally, don’t forget mutual funds. Even if you’re building your own portfolio, mutual funds can still play a role—whether it’s through your employer or a bank.

Keep it balanced.

If you’re just starting: mutual funds are a great place to begin.
If you’re ready to level up: build a mix of ETFs, some individual stocks, and mutual funds that match your goals and risk profile.

Next up: How to figure out your risk level—and why it matters.
Until then, think about where you are on your investment journey and how you want to shape your TFSA.

Stay curious!