Mutual Fund Investments

Provided through Sterling Mutuals Inc.

Investing in a mutual fund means that you are buying a portion of a professionally managed portfolio – your money is pooled with other investors like yourself. Each mutual fund is operated by a team of qualified people who make countless decisions in the market to achieve the fund’s specific investment objective.

Mutual Fund Investment Options

There are several types of mutual fund investment options, such as:

Security funds: these are designed to protect your wealth but return a modest level of income in exchange for the low risk involved. A typical security fund would be a money market fund.

Income funds: these can be a good choice when you want your investments to generate a regular income for yourself. Typical income funds invest in fixed income securities, bonds and mortgages.

Growth funds: these involve considerably more risk but have a higher long term return potential; this type is most suited to people with several years of earning potential. The range can be considerable, from conservative Canadian “blue chip” stocks to investments in global stock markets.

Aggressive growth funds: similar to growth funds but with more risk and return potential.  Investments are made in specific market sectors or emerging economies.

US dollar funds: these funds invest in US dollars and add diversified currency exposure to your investment portfolio.

Managed programs: here you have access to a portfolio of individual mutual funds.

Regardless of the type of mutual funds you own, investment growth is tax sheltered when it’s inside a registered investment such as an RSP, RIF, RESP or TFSA.

Not sure what type(s) of mutual funds are best for you? Ask Jacqui McFarlane and get honest answers to all your questions.