What is a Mutual Fund? A mutual fund is an investment pool that can hold equities, bonds, cash, derivatives or some combination of these, depending on its investment objective. The money in the pool is invested on behalf of the group by a portfolio manager. The value of the investments can go up or down and are affected by many factors including a change in interest rates or exchange rates, the economic conditions in Canada or abroad and news about the companies the fund invests in. If the investments make money, everyone makes money. Conversely, if the investments lose money, everyone loses money. Investment options include:

  • Fixed Income Funds – Invest in government or corporate bonds
  • Balanced Funds – Invest in a combination of fixed income and equities
  • Canadian Equity Funds – Invest in Canadian Equities
  • Dividend Funds – Invest in stocks that pay dividends
  • U.S. Equity Funds – Invest in U.S. equities
  • Specialty Funds – Invest in limited sectors of the stock market such as include Mortgage Funds, Real Estate Funds, Resource Funds
  • Asset Allocation Funds – A mix of mutual funds into a single portfolio generally designed to meet a defined risk tolerance

What are the benefits of Mutual Funds?

  • Diversification of investments
  • Cost efficient
  • Easy to invest in
  • Can be held in registered and non-registered plans
  • Thousands of Mutual Funds to choose from