“Risk” refers to the possibility of loss of principal, or alternatively to a rate of investment return below expectations or requirements.
Dividend income investments such as securities of mortgage investment corporations (“MIC”) are generally considered to be a more conservative investment than other securities, but these types of investments still carry a variety of risks that investors need to be aware of. Diversification can be a good way to minimize many of the risks inherent in MICs and is something you should discuss with your professional advisor. Before making investment decisions, investors should carefully consider whether investment products/services are suitable considering their financial position, investment objectives and experiences, risk tolerance and other relevant circumstances. Meanwhile the following is a summary of some of the risks associated with EquityLine MIC and similar MICs investors should understand.