A mutual fund is a professionally managed pool of money belonging to many people that is invested by experts in stocks, bonds or other securities with the goal of increasing the value of the overall pool. Each fund has written investment objectives helping investors decide whether it should have a place in their overall financial plan.
Mutual funds are typically appropriate for longer-term investing. That's because their value fluctuates with the values of the securities they hold and returns are not guaranteed. Short-term fluctuations can be quite dramatic, but historically, long-term returns have been higher than from guaranteed interest products. Some investment funds can be used for shorter-term objectives, fund facts should be carefully scrutinized to ensure suitability.
Mutual funds can be held in registered plans like RRSP's, RRIF's RESP's, RDSP's and some pension plans as well as in non-registered savings plans.
There is a mutual fund designed for every type of investor. While there are no guarantees, income can be generated for the most conservative of investors. Talk to me! Learning about your needs helps us pinpoint the right solution for you!