A few investment options to consider:
Empowered by independence, advisors at our firm are not tied to any particular fund company or investment product. Instead, we coordinate our advice with your personal goals and values. We build long term relationships with regular reviews of these goals and values as we recognize they can change over time.
MUTUAL FUNDS
Mutual funds describe a large portfolio of securities purchased with a pool of funds contributed by many investors, and which investment professionals manage. The large sums of money, which are invested in accordance with the objectives of the fund’s prospectus, allow the fund managers to buy many securities so that returns are not heavily dependent on the ups and downs of a few investments.
With thousands of mutual funds available to investors, take advantage of our expertise to weed through the options to develop a high quality portfolio.
Reasons for investing in mutual funds:
Professional Management - Each fund has an individual or team responsible for selecting the underlying holdings. These professionals are experts in their field and have the knowledge, information, time and resources necessary to make informed decisions. Continuous research and monitoring provide the fund managers with important information used to actively manage the fund. Portfolio managers must meet high standards of education and experience and be registered by provincial securities commissions.
Diversification - Mutual funds provide even smaller-size investors with the ability to diversify. Diversification reduces your exposure to the risk associated with any single or small group of securities. In addition to the general diversification, they also benefit from the securities regulations that limit the holdings of any single security to 10% of the fund’s total assets.
Liquidity - Mutual fund investments are generally liquid because you can sell all or a portion of your units on any business day. You have a right to be able to redeem your investment(s). Most of the time, from signing to deposit in your selected bank is just a few days.
Disclosure - The mutual fund industry is heavily regulated and subject to extensive disclosure requirements, placing significant accountability on the fund companies.
Scheduled Purchases - Investors can purchase mutual funds on a regular basis (ex: weekly or monthly) by setting up an automatic withdrawal from your bank account. This monthly purchase can be as small as $25.
GIC’S
Guaranteed investment certificates are debt instruments that guarantee a certain rate of interest for a set term. GIC’s can be purchased on their own or as a complement to a portfolio with other investments such as mutual funds. Generally, they are issued for a particular period of time (ex: $50,000 investment for 1,2,3,4 or 5 years) or in a ‘laddered’ approach (ex: $10,000 to each of 1,2,3,4 and 5 years).
An important contemplation would be the redemption privilege. A GIC can be set up as redeemable or non-redeemable, however, even when redeemable, exercising that right may result in a market value adjustment to the rate of interest. Another risk contemplation is inflation risk (the chance that your money may grow at a rate below inflation).
ETF’S
Exchange traded funds invest in a pool of securities which are set up to mirror a specific index (ex: S&P 500) or even a particular sector (ex: utilities or gold). ETFs can be attractive because of their low operating and transaction costs.
Remember the risks
Not every investment is susceptible to every possible type of risk. Talk to your financial advisor about risks such as:
Business Risk
Market Risk
Reinvestment Risk
Interest Rate Risk
Inflation Risk
Marketability Risk
Liquidity Risk
Political Risk
Exchange Rate Risk
Default Risk