What's a Mutual Fund?
A mutual fund is a collection of investments like stocks, bonds, and other funds. It lets you pool your money together with other investors, making it easier for you to own a more diverse array of investments. The fund is professionally managed to make sure it performs well, so you don’t have to worry about buying and selling investments on your own.
You can invest in mutual funds on their own or include them as part of a registered investment, like your RRSP or TFSA.
Benefits of Mutual Funds
You don’t need lots of money to start investing in mutual funds. An initial investment of $100, or $25 per month, is all you need to start growing your money.
By pooling investors' money, mutual funds can buy a variety of investments. This helps offset risk - if one investment performs poorly, your loss will be limited.
Get the most out of your money - mutual funds aren't guaranteed, but they typically earn more than savings accounts or Term Deposits. Plus, they’re professionally managed.
Earn more with Mutual Funds
Regular investing can help you stay on track. Set up regular automatic payments, like $25, $50, or $100 per month, to grow your money!
Frequently asked questions
Yes, though the exact amount depends on the fund. Fees pay the cost of managing the fund. They’re included in the cost of the fund.
Yes. A Credential Asset Management Inc. advisor at BVCU can make recommendations based on your goals and risk profile, but you get the final say.
Mutual funds are generally higher-risk than savings accounts and GICs, which are principal protected and can have guaranteed returns. However, the risk varies depending on the type of fund. Also, the risk can be offset by the fact that funds often hold diverse investments. For example, if one investment, like stock in a particular company, performs poorly, the fund’s other investments can help balance it out.
Some mutual funds invest in particular industry sectors, and if the industry as a whole is struggling the fund would likely experience a loss. We can help you understand your risk profile and where your money is invested.
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Mutual Funds are offered through Credential Asset Management Inc. and mutual funds and other securities are offered through Credential Securities and Credential Direct, a division of Credential Securities, which operates as a separate business unit. Mutual funds, other securities and cash balance are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Credential Securities, is a Member of the Canadian Investors Protection Fund. Credential Financial Strategies Inc. is a member company under Credential Financial Inc., offering financial planning, life insurance and investments to members of credit unions and their communities. ®Credential, Credential Securities and Credential Direct are registered marks owned by Aviso Wealth Inc.