The word investment does mean that there is a risk involved. Quite a lot of people do not invest too much in a single position. In a way they manage risk by just not taking it in the first place.
Low load mutual funds work the same way as DSC funds. The financial advisor gets a lower commission, usually 3%, as a result the MER does not have to be increased as much and you are only locked in for 3-4 years instead of seven. A much better option for you, but not as good an option for your advisor since their commission is decreased. If you hold DSC funds you may want to ask your advisor way they did not offer you low load funds instead. Almost all funds that have a DSC option have a low load option as well.
There are short term, middle term and long term investments and in order to witness exponential growth you will need to invest your money in top mutual funds. People having excess money but no time to invest in stocks may find mutual funds to be the best option. There are lots of companies that have evolved with time and have been performing well in the market and are considered to be safe by almost all the investors. It gives you an opportunity to attain various stocks and bonds. Top mutual funds have the best fund managers who have a vast exposure in the market.
In Feb 2010 Standard & Poor's launched its most recent Canadian Indices Versus Active Funds Scorecard with data for the five year period ending December 31, 2009. Below are a couple quotes from the report. "Over longer periods, we continue to observe indices outperforming the majority of domestic funds. In three-year and five-year periods, only 12.5% and 7.4%, respectively, of actively managed Canadian Equity funds have outperformed the S&P/TSX Composite Index."
If you pay your financial advisor an annual fee for managing your money, usually based on a percentage of your assets then chances are your own F class mutual funds. These mutual funds remove fees associated with paying commissions and trailer fees to your advisor so the MER is normally about 1% lower. This is done so the advisor can charge you directly and not receive further compensation from commissions.
It could be really tricky to find the best fund for you. You may like to invest in a fund whose manager thinks exactly the way you do. Important is to get comfortable with the fund manager who understand your needs and accordingly take action. You may also buy an index fund which runs on autopilot. It is always better to read the annual report before investing. Fund manager compares the NAV's of various companies and suggests the best option. Just be careful with high risk portfolios to play safe in the market
Low load mutual funds work the same way as DSC funds. The financial advisor gets a lower commission, usually 3%, as a result the MER does not have to be increased as much and you are only locked in for 3-4 years instead of seven. A much better option for you, but not as good an option for your advisor since their commission is decreased. If you hold DSC funds you may want to ask your advisor way they did not offer you low load funds instead. Almost all funds that have a DSC option have a low load option as well.
There are short term, middle term and long term investments and in order to witness exponential growth you will need to invest your money in top mutual funds. People having excess money but no time to invest in stocks may find mutual funds to be the best option. There are lots of companies that have evolved with time and have been performing well in the market and are considered to be safe by almost all the investors. It gives you an opportunity to attain various stocks and bonds. Top mutual funds have the best fund managers who have a vast exposure in the market.
In Feb 2010 Standard & Poor's launched its most recent Canadian Indices Versus Active Funds Scorecard with data for the five year period ending December 31, 2009. Below are a couple quotes from the report. "Over longer periods, we continue to observe indices outperforming the majority of domestic funds. In three-year and five-year periods, only 12.5% and 7.4%, respectively, of actively managed Canadian Equity funds have outperformed the S&P/TSX Composite Index."
If you pay your financial advisor an annual fee for managing your money, usually based on a percentage of your assets then chances are your own F class mutual funds. These mutual funds remove fees associated with paying commissions and trailer fees to your advisor so the MER is normally about 1% lower. This is done so the advisor can charge you directly and not receive further compensation from commissions.
It could be really tricky to find the best fund for you. You may like to invest in a fund whose manager thinks exactly the way you do. Important is to get comfortable with the fund manager who understand your needs and accordingly take action. You may also buy an index fund which runs on autopilot. It is always better to read the annual report before investing. Fund manager compares the NAV's of various companies and suggests the best option. Just be careful with high risk portfolios to play safe in the market
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