Mutual Funds | McPhail Financial Planning

Mutual Funds

Because there are thousands of mutual funds available across Canada in order to assist our clients with creating quality portfolios, we research and select only those mutual funds that meet each client’s risk tolerance and objectives.

Before investing, there are number of key details that every investor should first understand about mutual funds.

One of the simplest investment instruments available to a new investor is a mutual fund. A mutual fund is a professionally managed pool of money invested by people like you. There are many different types of mutual funds, each designed for a different type of investor with a different financial profile. When you buy a mutual fund, you are pooling your money with other investors who share your investment profile and your objectives.

There is strength in numbers

By pooling your money with other investors who have similar objectives, you can enjoy increased purchasing power and reduce your investment costs. Professional mutual fund managers trade securities at discounted institutional rates. Consequently, the savings they realize are passed along to you.

Keep your options open

A key benefit available through mutual fund ownership is diversification. The range of security types and asset classes offered in mutual funds can help to shield your investments from market fluctuations. If the value of one security held in a fund falls, the loss may well be offset by a rise in the price of another security.

By investing in a variety of asset classes, you can profit from the growth of one type of security, while shielding your portfolio from potential losses in another. Whether it is by security, company, industry, or country, mutual funds offer investors a level of diversification that would be difficult to achieve on their own.

Mutual Funds come in a variety of shapes and sizes

The most familiar mutual funds are equity funds, bond or fixed-income funds, money market funds, and balanced funds. A basic equity fund invests in the shares of various corporations. Equity funds differ in their selections of individual company characteristics, industries, or geographic locations. Bond funds offer investors the potential for interest income and the opportunity to realize capital gains over the long term.

For the interim investor, money market funds provide the chance to insulate capital while receiving returns superior to those offered by a bank savings account. Finally, balanced funds (or asset allocation funds) exist for those investors who want the benefits of greater diversification along with the convenience of owning bonds, money market instruments, and equities in one mutual fund.

Do you need ready access to your capital?

Generally, mutual funds are structured in such a way that accessing your money is as simple as calling our office. As your investment needs change, your personal mutual funds can also be easily changed. Subject to some restrictions, we can move money from one fund to another or cash in all, or part, of your investment at any time. To help build assets over the long term, you can institute a plan of regular investment contributions or, conversely, a plan of regular systematic withdrawals.

The advantage of continual professional money management

These mutual fund experts have access to some of the best quality investment research in the world monitoring both domestic and foreign markets around the clock. The knowledge, experience, and resources available to these professionals ensures that your investments will keep pace with today’s ever-changing markets.

Choose a fund that matches your personal objectives

Look for consistency in the long-term performance of the fund and the professional who manages it. Try to select a mutual fund that invests in securities you understand and that has a portfolio manager whose style you are comfortable with. For every client, we first review their unique investment objectives and we take care to understand their concerns so that we can provide them with information to help them select mutual funds that add value to their portfolio.

Mutual Funds have excellent potential to grow your capital

As you go through life, your financial goals change, and so too should your portfolio. We monitor your investments and help modify your portfolio whenever adjustments are required.