Investments
Benefits of working with an independent financial advisor include:
Personalized guidance based on your financial picture.
Independent advisors are not tied to any particular fund family or investment product.
A relationship that’s responsive, attentive, and personal.
To offer advice that is aligned with your goals, an independent advisor must first build a strong understanding of your situation. As a result, we build deep relationships. This means regular, ongoing interaction.
A high level of expertise.
Independent advisors can help investors address a variety of complex investment needs and develop a holistic financial picture.
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.
There are thousands of mutual funds available across Canada. In order to assist our clients with creating quality portfolios, we use software to research and select only those mutual funds that meet your risk tolerance and portfolio performance objectives.
Reasons for investing in mutual funds:
Professional Management - Each fund has an individual or team that selects the securities held within. These individuals or teams are professionals who 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 smaller-size investors with the opportunity for diversification of assets across many securities. This allows the investor to reduce their 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 - For the most part, a mutual fund investment is liquid because you can sell all or a portion of your units on any business day. You have a right to redemption. The mutual fund must redeem the shares when requested and securities regulations define how the processing must occur. In most cases, an investor will have access to your funds within a matter of a few days after having submitted a written request for redemption. (Real estate funds are an exception.)
Disclosure - The mutual fund industry is heavily regulated and subject to extensive disclosure requirements, placing significant accountability on the fund companies.
Schedules Purchases - Investors can purchase mutual funds on a regular basis (e.g. monthly) using automatic debit from your bank account. This monthly purchase can be as small as $25.
GICS
GIC's are generally one to five-year deposits with a bank or other financial institution like a trust company. You agree to keep the money in the GIC for a set period in return for a set rate of interest.
GIC's are guaranteed, however, they are not without risk. For example, you may need access to your money before the GIC matures. In a cashable investment you may have the ability to redeem it, but you will lose some of your interest. In a non-redeemable investment, you will not have access to the money until the maturity date. There is also the chance that your money may grow at a rate below inflation.