Insights & advice
What are mutual funds?
A mutual fund is a group of investments, such as stocks or bonds, in a single fund.
This way, mutual funds allow you to invest in different companies or bonds at the same time.
Investing in mutual funds means putting some of your money in a larger pool of funds managed by professional money managers.
Due to the large sum of money in the pool, and because your money is managed by specialists, mutual funds can help you diversify your investments , reducing your risk.
Your investment representative can help you pick mutual funds based on your comfort with risk and individual investment goals, putting you in control. Your choice of mutual funds can be updated as your life changes.
Choosing a single company, industry or security isn’t always the best way to invest. Mutual funds can help by allowing you to diversify your investments in many different companies and industries, or in bonds and other securities.
Funds when you need them
Typically, mutual fund units can be redeemed – or “cashed out” – at any time. The redemption value will depend on how the fund’s sales charges are set up and the fund’s unit value on the day of redemption. This may be lower or higher than the original purchase price.
Buying a mutual fund means investors can put their money into a variety of securities at a fraction of the cost of purchasing a similar mix of securities individually – a cost that’s shared with other investors.