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Mutual funds

A diverse way to invest your money

Spreading out your money with mutual funds reduces your risk compared to investing it on your own.

Wide range of options

There are a large variety of mutual funds available all of which include many different companies from different industries, countries and investment types which can help reduce risk.

Less costly

Your money is pooled with other investors making it much more cost effective than buying individual stocks on your own.

Professional managers

Feel confident knowing that your hard earned money is being managed and overlooked by a team of experienced professionals.

What is a mutual fund?

A mutual fund is a company that brings together money from many people and invests it in stocks, bonds or other assets. The combined holdings of stocks, bonds or other assets the fund owns are known as its portfolio. Each investor in the fund owns shares, which represent a part of these holdings and each fund is built with a specific objective and investment type in mind.

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Our team can answer all your questions, understand your situation and help you build a plan.

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How can your money grow with mutual funds?

Dividends and interest payments

You can earn income from dividends on stocks and interest from bonds. It’s up to you as to whether you want it reinvested or paid out to you. 

Capital gains

When a mutual fund sells an investment that’s increased in price, this is considered a capital gain. Most funds deliver a gain or loss annually to its investors.

Net asset value

Net asset value, or NAV, is equal to a fund’s or company’s total assets less its liabilities and is commonly used to identify potential investment opportunities within mutual funds.

Advantages of mutual funds

Team of professional fund managers

You can earn income from dividends on stocks and interest from bonds. It’s up to you as to whether you want it reinvested or paid out to you. 

Spreading out your money

A mutual fund gets you access to a number of different opportunities, without the risk that comes with purchasing and keeping track of individual investments on your own.

Different objectives for different goals

You can invest in a registered retirement savings plan (RRSP) if you’re looking to contribute towards your retirement, or a tax-free savings account (TFSA) to save everyday for everyday. All of which can hold mutual funds.

It’s there when you need it

Your money from your mutual fund investment can be liquidated or “cashed out” at any time you need it. Just keep in mind the amount of money available will depend on the day’s unit value and any redemption fees.

Mutual fund fees explained

Mutual fund fees can usually go towards:

 

  • investment advice;
  • administration;
  • professional mutual fund management.

 

Advisors who sell mutual funds must always disclose any fees related to the fund’s you’re investing in. They are also required to inform you about their compensation.

There are three types of mutual fund fees:

Management expense ratio (MER)

You can earn income from dividends on stocks and interest from bonds. It’s up to you as to whether you want it reinvested or paid out to you. 

Redemption fees

When a mutual fund sells an investment that’s increased in price, this is considered a capital gain. Most funds deliver a gain or loss annually to its investors.

Sales charge

Net asset value, or NAV, is equal to a fund’s or company’s total assets less its liabilities and is commonly used to identify potential investment opportunities within mutual funds.

What kind of fund is for you?

Segregated fund policies and mutual funds in many ways are similar, here is a chart to help you make an informed decision.

Mutual funds Segreagted fund policies
Investment type
A pool of money spread across different investments and managed by experts
A pool of money spread across different investments and managed by experts
Fees
Less than those of investing in individual stocks, and less than segregated fund policies
More than mutual funds.
Guarantees
None
Segregated funds offer significant guarantees on the amounts invested. They apply during the client’s lifetime, at contract maturity or at death.
Variety of Investment
Many options
Many options
Estate planning
Mutual funds that are registered have no probate, and the proceeds are passed on to your beneficiaries when you die.
When you die, the proceeds are passed on to your beneficiaries directly with no probate.
Potential creditors protection
Bankruptcy protection for registered mutual funds may apply, but there are rules to the exception.
Yes, there is a protection.

We can help you start saving and investing today.

Our team can answer all your questions, understand your situation and help you build a plan.

Contact an advisor
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