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Mutual funds
A investement for people who pool their money to buy stocks, bonds, and other financial securitied by a proffesional funds manager. Each investor has a right to a porpotional share of the assets of the fund and any income it creates. Many people choose mutual funds for thier retirement accoount
Management Express ratio
Expressed as a fixed percentage of the fund’s total value,
called the Management Expense Ratio (MER). Ranges from
0.25 per cent (rare) to 4 per cent, to cover investment
company’s costs. Fee is up to 0.5 per cent higher for back-
end load funds.
Money market funds
Income and liquidity through investment in short-term
money market instruments
T-bills, commercial paper, short-term government bonds
Mortgage fund
Aim fo rincome and safety, hold a group of mortgages
Bond funds
Aim for safety of principal and income but are subject to
capital gains and losses, which have tax implications
§ Government and corporate debt securities
Dividend funds
Dividend funds Aim for tax-advantage income, Possibility of capital growth, Invest in preferred shares, or High quality common shares
Balanced and Asset Allocation funds
Provides a mixture of safety income and capital appreciation
Equity or Common Stock funds
Capital gains, common shares
Segregated funds
Insurance companies as an alternative, Guarantee that a portion of your principal will be returned to you at maturity
Income dividends
Income dividends is the earnings a company pays to its shareholders after deductions from its dividents and intrest income
Capital gain distributions
The payments made to a fund’s shareholders that result
from the sale of securities in the fund’s portfolio