 
Learning Centre -
Mutual Funds
A quick look at risk
Choosing which investments are right for you
will depend on a number of factors:
Your
Primary Goal
Is it to have your money readily accessible, to have a dependable source
of regular income, or to build your assets over time? Each type of investment
fulfills a different need.
Your
Time Horizon
When will you need the proceeds of your investment? If it's within
a few months or years then short-term cashable GICs or income investments
should be considered. With a long term horizon, you may want to add growth
investments to the mix.
Your
Risk Tolerance
Growth investments with a higher level of risk will generally pay
higher return, but if your nest egg and peace of mind are key, investments
with safety of principal is the answer.
Simple
risk definitions:
| Inflation |
Increases
in the value of goods will erode the purchasing power of your investment
|
| Interest |
Rate
Rates rise - Fixed rate investments lose value |
| Currency |
The
value of your investment is effected by the fluctuations in currency
value |
| Market |
Stock
market - economic, political or social events that produce declines
in value |
| Credit |
Possible
default on payments or secured assets decline below par value or face
value |
Money
Market:
A type of mutual fund that invests solely in money market short-term debt
instruments (T-bills, commercial paper, bankers' acceptances, etc.) are
issued and traded. The money market is devoted to debt securities that
are repaid within three years of issuance.
Mutual
Funds: A mutual fund is a portfolio of investment securities held
in the name of the fund, which is owned by people who have bought shares
in the fund itself
Segregated
Mutual Funds: A special type of mutual fund it's portfolio of investment
securities are held in the name of the fund, which is owned by people
who have bought shares in the fund itself and operated by a Life insurance
company. A typical investment guarantee of 70 - 100% at 7 - 10 year maturity
and death guarantees may apply.
Today's investor
has no shortage of investment options to choose from. At Fiscal Agents
we believe that an informed investor is our strongest asset and as such,
our financial advisors have an open-door approach to the financial services
marketplace, we can help guide you through many types of investments decisions
you are faced with by calling (905) 844-7700.
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