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A mutual fund pools your money together with other
people’s money and makes investments using the guidance of a professional
money manager. As each mutual fund has its own declared investment
objectives, the fund manager selects a variety of investments that suit
these objectives.
Funds can invest in stocks, bonds, cash or other securities or combinations
of these types of securities. When the fund makes money, everyone shares in
the gain. When the investments lose money, everyone shares in the loss.
When you put money into a fund, you are purchasing units or shares of a
particular fund.
Mutual funds have an element of risk, and depending on the investment
objectives of a particular fund, they may have a greater or lesser element
of risk. However, because mutual funds are invested in diversified
securities, they control risk to a degree. If any one investment should lose
money, the fund’s unit holders still may be making money on the other
investments in the fund.
In general, you can invest in a mutual fund with as little as $500, or
$50 a month.
Today, there are many mutual fund companies. Each company offers different investment styles and
objectives. So one fund may invest in
Canadian stocks; another may invest in Canadian bonds; another in stocks in
companies based around the world; another in money market securities; and so
on. This is important because as economic conditions change, so do
investment opportunities.
With Foresters Securities customers can select from a variety
of mutual funds for their retirement plan.
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for Americans
