What is a Mutual Fund?

A mutual fund is an investment that gives individuals access to a well-diversified portfolio of equities, bonds and other securities. Shares are issued and each shareholder participates in the gain or loss of the fund.  The shares can be sold at any time.

Why mutual funds?

• Mutual funds allow you to spread your portfolio over many different investments, thus reducing your overall portfolio risk.
• Mutual Funds are managed by professional money managers who have access to detailed company research, economic data, and an understanding about how world events will affect investments.
• Mutual fund units are bought from (and sold back to) the mutual fund company at the next available closing Net Asset Value Per Share. Any investor who wants to buy or sell a mutual fund can do so without having to worry about whether a liquid market is available.
• Mutual funds allow investors fixed dollar investments, unlike equity purchases. This allows you to be fully invested at all times.
• Distributions that are paid by the fund can be automatically re-invested into additional units of the same fund at no cost. This will help to ensure that you are staying fully invested, thus maximizing your returns through compounding.