What is a Mutual Fund?

“Power pooling – to meet your investment goals.”

A mutual fund is an investment allowing people to pool their money in a collection of stocks, bonds, and other securities.   Each investor owns units that represent a portion of the fund’s holdings.   When the mutual fund increases in value, you share that profit proportionally with everyone in the fund.

Professionally managed:  mutual fund investments are handled by a fund manager (sometimes called a portfolio manager, money manager, or mutual fund manager).   Using their professional knowledge and experience, fund managers decide what stocks, bonds, cash or combinations the fund should buy or sell and when to do so.   The fund manager is paid a fee for his/her services.

Liquidity:  at any time, mutual fund investors can sell their units.   Although mutual funds give you access to your money, be sure to note that you may incur fees and tax consequences for withdrawals.

Affordability:  mutual fund companies offer a wide variety of funds with minimum investment requirements for all types of investors.

With over 4,000 mutual funds on the market today, we can work with you to decide which funds best match your goals and the most effective way to incorporate them into your portfolio.

 

Questions about Mutual Funds?

Please send an email to forgravefinancial@persona.ca

 

*Mutual funds are distributed through Desjardins Financial Security Investments Inc.  For insurance  products,  Desjardins Financial Security Investments Inc. acts as a national life insurance brokerage agency.