INVESTMENT OPPORTUNITIES

Building an investment portfolio is one of the most important financial decisions you can make. Choosing the right investments can help you achieve your financial goals.

However, investing successfully can be difficult to do on your own. You need accurate and timely information, along with the right experience, to build and maintain a portfolio of individual investments. Mutual funds can make it easier.

A mutual fund brings together many different investors with similar goals. Each investor puts money into the fund. A professional portfolio advisor uses that cash to buy a variety of investments for the fund, depending on the fund’s objectives.

When the investments make money, everyone who invests in the fund benefits. If the value of the investments falls, everyone shares in the loss. The size of your share depends on how much you invested. The more you put in, the more units or shares of the fund you own and the greater your portion of the gains or losses. Mutual fund investors also share the fund’s expenses.

Most mutual funds invest in securities like stocks, bonds and money market instruments. The funds also may invest in other mutual funds.

Advantages of mutual funds

Investing in a mutual fund has several advantages over investing in individual stocks, bonds and money market instruments on your own:

• Professional money management. Professional portfolio advisors have the skills and the time to do research and make decisions about which investments to buy, hold or sell.
• Diversification. Investment values are always changing. Owning several investments can improve long-term results because the ones that increase in value can compensate for those that do not. Mutual funds typically hold 30 or more different investments.
• Accessibility. You can sell your investment back to the mutual fund at any time. This is called a redemption, and in some cases may result in a redemption fee or a short-term trading fee. With many other investments, your money is locked in or you have to find a specific buyer before youcan sell.
• Record keeping and reporting. Mutual fund companies use sophisticated record keeping systems and send you regular financial statements, tax slips and reports.

Mutual funds are not guaranteed

While mutual funds have many advantages, it is important to remember that an investment in a mutual fund is not guaranteed. Unlike bank accounts or guaranteed investment certificates, mutual fund investments are not covered by the Canada Deposit Insurance Corporation or any other government deposit insurer.

Whether or not this type of investment is suitable for you can only be determined with a licensed qualified financial advisor and a personal interview.

Courtesy CI Funds