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What
is a mutual fund?
A mutual fund is simply
a pool of savings contributed by many investors and invested on their
behalf by a professional money manager. Mutual funds offer easy and affordable
diversification among different asset classes , and sectors and industries
and across geographical boundaries.
ADVANTAGES
- Professional investment management at an affordable price
- Safety through diversified portfolios
- Broad choice of funds to meet virtually any investment objective
- Strong performance track record
- Easily bought and redeemed thus making them a highly flexible investment
INVESTOR
PROTECTION
In addition to the security that comes from owning a well diversified portfolio, it is important to remember that while mutual funds are not guaranteed by nature, the mutual fund industry is heavily regulated. The assets of a mutual fund are owned by the investors in the fund. By law, the fund's investments must be held by a Canadian custodian which is generally a Trust company or chartered bank. The fund manager may not under any circumstances borrow or otherwise invest the fund's assets for its own purposes. CHOOSING BETWEEN THE DIFFERENT TYPES OF MUTUAL FUNDS 
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