MUTUAL FUNDS

Mutual funds are one of the many investment options available in Canada to an investor looking to save for the future, grow their net worth or invest a lump sum from individual or corporate annual earnings.

  financial planning 2  Ask a financial advisor: Should you invest in mutual funds?

They can be an excellent investment vehicle— provided you understand exactly what you’re investing in, the risks associated the investment, what the terms and conditions are and, most importantly, you have the confidence you hired a financial advisor who has your best interests in mind. 

 

Mutual funds can sometimes be a safer alternative to buying and selling individual stocks or bonds.  And, you can use mutual funds inside an RRSP.  If you’re wondering how to invest your money, a financial advisor can help you decide.  Consider the following to see if investing in mutual funds might be right for you. 

        • Are you looking for someone to help you manage your investments?
        • Do you like the idea of diversification within your investment portfolio?
        • Do you have a low, moderate, or high level of risk tolerance?
        • Are you looking to invest for 1-2 years, 5-7 years or long term?
        • Is the idea of investing in the stock market exciting to you, but you don’t want the hassles of managing it yourself, monitoring the financial markets every day, or paying a broker a set fee every time you buy or sell a stock? 

 financial planning 2   What are Mutual Funds?

        • Mutual funds are offered through a large bank or other financial institution— whereby hundreds of thousands of people pool their money together to invest in a certain asset class, sector and geographic region.
        • Each mutual fund is divided into shares.  And, with the guidance of a financial advisor, investors purchase shares based on their financial goals, and tolerance to risk.
        • Every mutual fund portfolio has specific investment objectives that are agreed upon by the investors.  And, portfolios are structured and maintained to meet these objectives.
        • Fund managers oversee mutual funds.  They’re responsible for choosing the investments inside the funds.

financial planning 2  Why purchase mutual funds?

Mutual funds are an affordable way to start your investment portfolio, or to diversify your assets.  The fund manager takes care of all the details— so, you don't have to worry about keeping track of several holdings at once.  That’s why they’re a popular investment choice in Canada.  With flexible investment options, mutual funds are a valuable component of any financial management plan. 

 

financial planning 2  Top 5 Benefits of Mutual Funds

Applestock & Associates has access to thousands of mutual fund products, from more than fifty Canadian banks and Canadian investment institutions (such as, TD Canada Trust, CIBC, RBC, Dynamic, BMO Guardian, IA Clarington, Franklin Templeton).  Mutual funds also offer a variety of programs to suit your unique needs.

  • Liquidity/cashable

A mutual fund can be sold and the cash proceeds transferred to your chequing account at your local bank within four business days (T+3).  The selling price is based on the unit value determined at the end of each trading day.

  • Priced daily (evening)

Mutual fund is priced daily.   An individually owned stock, however, trades on the open market— and can rise and fall within seconds or minutes. 

  • Create a diversified portfolio

A diversified portfolio helps you manage your financial risks by investing in more than one industry at a time.  For example, if one of your investments in the consumers good sector has a downturn in the market— your overall portfolio could remain strong and secure— because your other investments might help offset the impact.

  • Affordability

Buying shares of larger corporations can be expensive.  Since mutual funds generally buy and sell securities in large volumes, investors benefit from lower trading costs.  And, most funds allow you to begin investing with as little as five hundred dollars.   

  • Real Estate Mutual Funds

Are you interested in investing in the real estate industry?  If so, purchasing a real estate mutual fund might be a good idea.  Investing in a single sector can be risky.  But, as part of a diversified portfolio, real estate mutual funds can add great value to your financial management plan.  Real estate mutual funds are an excellent option for investors looking for long-term growth through capital appreciation in the Canadian real estate industry.  Applestock & Associates has access to the best real estate mutual funds in the industry.  Trust our investment advice service to lead you in the right direction.

financial planning 2  Financial Management Tip

Mutual funds are not guaranteed.  As with any investment option, there are risks involved in buying mutual funds.  The market is often unpredictable.  It can fluctuate unexpectedly— sometimes providing returns on your investment far below the initial market value.  Mutual funds are valued daily and have no guarantee.  As a result, there is always the possibility that the value of your mutual fund will depreciate.  Mutual funds also come with additional costs: many of them carry loads, annual expense fees, and penalties for early withdrawal.  Avoid the pitfalls— seek mutual fund advice from a qualified financial advisor.

financial planning 2  Understand your tolerance to risk

An investment fund advisor will take the time to get to know you, and understand your unique needs.  And, they’ll always evaluate your tolerance to risk before recommending a mutual fund.  An experienced financial advisor monitors the market and understands when, where and why to invest. Applestock & Associates understands the risks associated with each financial product.  And, we always make well-informed decisions based on whether our clients desire financial stability and consistency, or if they’re more open to taking financial risks.  Your long-term financial success is our main priority.Applestock & Associates will help you decide if investing in mutual funds is the right choice for you.  We’ll review your investment options with you and explain the advantages and disadvantages of each.  We offer mutual fund investment advice you can trust— tailored to meet your specific needs and life situation.  And, we’ll help you rearrange your investment portfolio as your lifestyle needs change.  We make a commitment to your long-term financial growth and stability. 

Mutual funds could give you the long-term capital growth you’re looking for.

Contact us today.  Applestock & Associates is located in Markham, ON.  We service clients in Toronto, Scarborough, Etobicoke, East York, North York, Richmond Hill, Aurora, Newmarket, Vaughan, Maple, Woodbridge, Markham, Pickering, Whitby, Ajax, Mississauga, Brampton, Hamilton, Oakville, and Milton.  We also make house calls to individuals who cannot get to us.

Mutual funds provided through FundEX Investments Inc.