Who
should consider Mortgage Mutual Funds? |
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Mortgage interest rates are, in most cases, higher than interest rates on other debt securities such as bonds, guaranteed investment certificates and debentures with the same term to maturity. Consequently mortgage funds aim to provide a higher level of interest income. They are suitable for individuals who require interest income for current needs and for people seeking a conservative investment for retirement savings. Mortgage funds are an appropriate part of a balanced investments portfolio because thy can offset price volatility common to many other investments. Virtually all mortgage funds are RRSP and RIF eligible. Mortgage are secure investments. However, the market values of mortgages will vary with changes in mortgage rates. Consequently, mortgage mutual funds fund values will also fluctuate. Mortgage funds are generally a lower-risk investment than equity and bond funds. Note however, that low-risk investments is not the same as a "risk-free" investment. To find out more how an a Mortgage fund would add diversify and balance to your portfolio, please call us at 1 (905) 844-7700 for an independent investment advisor at Fiscal Agents. 
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