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| Glossary of
Mutual Fund Terms
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| Click above
to find out how Fiscal Agents can assist you
on investing in Mutual Funds. |
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Use this link to connect you directly to additional useful information
related to Mutual Funds.
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| What
about segregated funds? |
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| Segregated funds offer several
differences over traditional mutual funds and should be considered
by investors who need the comfort that they provide. Similar to mutual
funds segregated funds are investment funds that pool together the
assets of investors with similar objectives who want to diversify
their investments, reduce their risk and lower their investment costs. |
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| Systematic
Withdrawal Plans: When is the tax paid? |
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| You’ve arranged to have
your mutual fund investments pay you an income throughout the year,
choosing the systematic withdrawal plan (SWP) option and wonder how
withdrawals are taxed. Here's a quick refresher. |
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| It's
After-Tax Returns that really count |
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| Strategies to reduce and defer
taxes are an integral part of an overall investment plan. In the final
analysis, what matters is not just how much money you make, but how
much you actually keep and have available to enjoy life and meet your
financial goals. |
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| Understanding
the art of maximizing After Tax Returns, not Pre Tax Returns |
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| For anyone who has recently agonized
over their tax return and wondered if there was a better way to structure
non registered investments to reduce the taxes on mutual fund distributions
or the capital gains tax incurred when portfolios are adjusted, the
following information may be of interest to you. Taxation on open
accounts can substantially reduce any investment gains and investors
should pay particular attention to maximizing their AFTER TAX RETURNS,
not their pre tax returns. |
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| Guaranteed
Mutual Funds...are they better? |
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| An investor also has to look
at the taxation differences between the two types of investments because
taxation is an ongoing issue that affects every investor and as noted
below taxation differences apply not only between a given company's
mutual funds and their seg fund counterparts but there are also differences
among companies in how they report liabilities with respect to their
seg funds |
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| Seg Funds
pro's and con's |
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Seg Funds are an extension of
a traditional mutual fund product with the addition of benefits from
life insurance companies, making them more attractive to risk-conscious
investors. But just like any investment, they have their positive
and negative factors. Are Seg Funds the investment for you?
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| Look out...
large Mutual Fund year end payout |
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| For many mutual fund investors,
the end of the year means more than just the onset of the holiday
season. It also signals the payout of mutual fund year-end distributions
which can have a strong impact on your tax situation for the present
year. |
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| Match Mutual
Funds to your personal needs |
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| The number of mutual funds available
to Canadian investors has increased dramatically in the past few years
and with such depth of choice, it can be very difficult to know what
mutual fund is right for you. Never fear, a simple solution to this
quandary is to concentrate on selecting funds that are closely matched
to your own personal needs. |
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| Making
the switch to Mutual Funds |
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| When interest rates fall, normally
risk-conscious investors often venture out to try their hand at investing
in mutual funds. These investors, who would normally lean toward more
traditional investments like GICs, are often attracted by a promising
mutual fund story they have heard and are unprepared for the possible
consequences and implications that can result. |
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| Mixing Growth
Funds and Fixed Term Annuity |
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| Mixing growth funds and fixed
term annuities could be the answer for savers faced with the prospect
of renewing GICs in low interest rate environments. Low interest rates
at renewal can cause GIC investors to set out in search of other investments
offering a better rate of return. |
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| Mutual Funds
offer built-in safeguards |
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| Some degree of risk is inherent
in any form of investment however each individual investment is affected
by different types of risk. Mutual funds provide built-in safeguards
that eliminate certain types of risk, namely that of the fund manager
experiencing financial difficulty or going bankrupt, regardless of
the fact that mutual funds do not qualify for CDIC protection. |
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| Buy investment
funds each month and make money |
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| Purchasing investments such as
mutual funds on a consistent monthly basis works to your advantage
by saving and making you money at the same time. The average price
of each unit is lower since you end up buying more units when prices
are low and fewer when prices are high. |
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