|
 Choosing
to invest in Mutual Funds is recognizing the merits of the old adage,
"Never have all your eggs in one basket".
In
essence, we are talking about Risk. Risk has a different meaning
to different people, and before you can be comfortable with risk,
you need to develop an honest and candid understanding of your own
risk tolerance levels. By doing so, you take the first step towards
making smarter decisions.
Knowledge,
information and their application provide the cornerstone of any
successful investment plan. This section provides a primer to that
understanding.
| Investing
in Mutual Funds, 101 |
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What
is a Mutual fund? Mutual funds offer easy and affordable
diversification among different asset classes, sectors and industries
and across geographical boundaries. We explain who should consider
investing and describe the types of funds available. |
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Types
of Mutual Funds is a collection of summaries of existing
fund types. |
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Identifying
Your Goals Illustrates how much money you will require to
attain your future goals. |
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The
risks that surround investments We have listed several types
of risk you should gauge when reviewing an investment. Even
stalwart GICs carry a risk factor |
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How
to analyze risk Risk is a measure of the possibility that
you will not receive your expected return on an investment.
Generally, risk and reward move in the same direction. Over
time higher rewards go with greater risks, but not always. A
smart investor always measures the risk. |
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Investment
Philosophy Score Card
Discover how to determine your investment objectives and risk
comfort level by answering a few short questions. |
Other
considerations we would suggest you review are outlined within Cornerstone®
Planning. By following the process that we have put together,
you will have the benefit of the collective investment wisdom which
has been acquired over our 25 years in this business.
Investment
Objectives - Diversification
- Asset
Allocation - Risks
and rewards - Model
Mix - Inflation
- In
the Long-term - Retirement
Your
needs and circumstances will change over time. It is important
to periodically monitor you investment mix on a regular basis to
ensure that you are on track for your goals, and that any significant
changes in your personal situation are addressed.
Caveats
- Taxation
and purchase timing are factor to consider when purchasing investment
funds.
- Ongoing
Management fees can dampen you overall returns - not all fund
managers levy the same percentages.
- Don't
buy a Labor Sponsored fund on the merits of the tax deduction
- Its an investment.
- Be
mindful of the relationship of the "investment advisor"
marketing his own company products - ask how independent he is.
| Mutual
Funds - Getting Advice |
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Fiscal
Agents - Cornerstone Planning® encompasses a unique process
of understanding - together exploring what's important to you -
What financial plans you've made - what goals need to be attained.
| Featured
reading on Mutual Funds |
|
This
must-read section brings together relative information you need
to get started or enhance your understanding of the elements of
Mutual Funds.
Money Management Newsletter
|
The
Companion Advisor
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Our Bookstore
section contains details related to books that we recommend
for various areas of investing. Also provided are links to ordering
information on each title from Chapters.Indigo.ca. |
Featured titles for Investment Planning include:
| Mutual
Funds - Useful links |
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InterWeb
Contains web site links to all major mutual fund companies. |
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Fundlibrary.com
- Research tools, comment and analysis of fund types and firms |
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Morningstar.ca-
provides the consumer version of the professional software program
many mutual fund advisors use in their analytical process -
Contains individual reviews on mutual funds available in Canada. |
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Globefund.com
- Much the same as above.- Contains In-house archive of articles
on mutual funds. |
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Fundscope.com
- An independent fund analysis service, allows certain services
to be used without charge, otherwise a subscription fee is in
effect. |
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