Does a diversified portfolio also include investment institutions?

I’ve got a large portfolio that is well diversified over indexes, dividends, and growth, and across many sectors using unregistered, TFSAs and RRSPs. But I’m also managing these investments over 5 different companies. I would love to bring them all under one institution (TD Investing). Is it part of the ‘diversification’ method in a portfolio to use multiple institutions? Do I introduce any risk bringing them into one?

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Asked on May 27, 2024 10:42 am

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Private answer

That really depends on your account size.

You are covered up to $1M via CIPF insurance at an institution. So if you invested with TD Bank and they went belly up and you had $1.5M in there, you'd likely only get $1M of it back.

But if you split it, $1M to TD and $500k to... CIBC lets say, you'd have coverage on all.

I don't foresee these institutions going bankrupt or anything. However, it is certainly not impossible, so if you'd like to spread out your accounts, it's not a bad idea.

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Posted by Dan Kent

Answered on May 27, 2024 3:58 pm

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