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A flexible way to invest your money

Mutual funds are a great option to help reduce your risk by spreading your money more widely than investing on your own.

Broad options

Mutual funds invest in many different companies, industries, countries and investment types, which can help reduce risk.

Cost effective

Your money is pooled with other investors making it much more affordable than buying stocks by yourself.

Expert management

You can be confident your money is being managed by a team of professionals who have training and experience.

What is a mutual fund?

A mutual fund pools your money with many other investors in a group of investments, like stocks and bonds. A professional money manager chooses the investments for each fund with a specific objective and investment type in mind. For example, a Canadian equity fund invests primarily in Canadian stocks.

Mutual funds can help you spread your money more widely than investing in individual stocks and bonds on your own.

Talk to an advisor to start investing today.

How can you grow your money with mutual funds?

You earn income from dividends on stocks and interest on bonds held in the mutual fund. You may have the choice to either receive a cheque or reinvest the earnings and get more shares.

Dividend payments

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

Capital gain

If investments in a mutual fund rise in value but aren’t sold by the fund manager, the mutual fund shares increase in price. Providing the fund doesn’t decrease in value, your investment will grow in value when you decide to sell the mutual fund.

Net asset value (NAV)

Advantages of mutual funds

Mutual funds are managed by professional portfolio managers who buy the securities in the fund. They ensure the securities are in line with the fund’s investment objective—and yours.

Team of experts

By investing in one fund, you get access to a number of different opportunities, without the hassle or risk that comes with purchasing and monitoring individual investments on your own.

Putting your eggs in several baskets

You can invest in mutual funds as part of a registered retirement savings plan (RRSP) to save for your life after work, a registered education savings plan (RESP) to help fund a child’s education, or a tax-free savings account (TFSA) to save for almost anything.

Achieve different investment goals

Mutual fund units can be “cashed out” any time but remember the amount of money available will depend on the mutual fund's unit value on that day and any redemption fees.

Money when you need it

Mutual fund fees explained

Mutual fund fees go towards paying for investment advice, administration and professional mutual fund management.

Advisors who sell mutual funds are required by law to disclose any fees associated with the fund you’re investing in. They’re also required to tell you about their compensation.

There are 3 types of mutual fund fees:

Management expense ratio (MER)

Management expense ratio (MER) is paid by the fund itself for costs associated with the fund like client statements and the advice you get from your advisor.

Sales charges

Sales charges (sometimes called front-end loads) are commissions made by advisors when you purchase some mutual funds.

Redemption fees

Redemption fees (also known as back-end loads) are fees you may pay on some mutual funds if you sell them within a certain time frame, or sell percentage of your investments with a year.

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