INVESTMENTS: Mutual Funds

Discover the Key Benefits of Mutual Funds

Professional Management

Mutual Funds are managed by investment professionals who work in the field full time.

Flexibility

As your investment goals change, you can transfer part or all your investment from one fund to another to achieve different objectives.

Diversification

Diversification provides a way to reduce risk by holding a variety of investments. Mutual funds provide built-in diversification because a fund's holdings are invested in a range of securities, asset classes and/or geographic regions.

Choice

With more than 4,500 mutual funds in Canada, there's a fund out there to meet virtually every need.

Liquidity

Mutual funds are easy and convenient to buy and sell. For most funds, you can cash in your investment on any business day and receive the current cash value in a few business days.

Cutting Through the Jungle

Mutual funds can be categorized by what they provide and what they invest in. They Provide:

If you need to live off your mutual funds, it is important to look for funds that produce a steady stream of income. You may find you need income, but you still want some growth so your income can continue to increase over the years. An income/growth fund may be the right option. If you don't need the income for a while, you may opt for a growth fund.

A fund producing income is generally less risky than one producing growth, but will usually provide a lower return on your investment.

What they invest in: Income funds invest mainly in fixed-income investments, including bonds, treasury bills, and mortgage-backed securities.

Growth funds generally invest in the stocks (shares or "equity") of a company. Equities offer no guarantees, but your money can grow over time. For example, the stock market fluctuates from day to day, but stocks have outperformed all other investments over the long term.

Balanced funds invest in both income and growth investments.

Funds can also be categorized as Canadian or international. This is an important distinction because your Registered Retirement Savings Plan's assets (among other types of plans) are limited to 30% or 100% RSP eligible foreign content.

Do you require an expert to help you achieve your financial goals or a second opinion to evaluate your mutual fund portfolio? 

Complete our on-line form to receive a free information package or contact Horizon Planning Group any time at 1.877.683.9322. If you prefer you may always send us your questions via email to investments@bestplans.ca and we'll reply back with expert advice within 24 hours.

Seeking Advice

Asset management can consume a considerable amount of time and energy. Today's complex financial marketplace and changing tax laws can make it even more difficult to keep up with the changes and how they affect you.

Because of these implications, it is highly advisable to seek a qualified professional to help you understand all the complexities involved.

Looking for the Best Investment Funds Advisor to help you achieve your financial independence? We'll find the Best for you... Click here!