What is a Mutual Fund?

A mutual fund pools money from a group of individuals with similar investment objectives. Professional managers use the pooled money to purchase securities such as stocks, bonds or money market instruments - whatever is most appropriate for the fund's stated objective.

What are the benefits of a Mutual Fund investment?

Instant Diversification
An initial investment of $500 can offer mutual fund investors access to a wide variety of securities with one single investment. A well-diversified portfolio can be too difficult and too expensive for most individual investors to construct on their own.

Professional Management
Mutual funds are managed by experienced full-time portfolio managers. Few individual investors have the training or time necessary to select specific securities in light of changing market conditions.

Liquidity
Mutual fund units can be sold at a price established at the close of each business day. Individual securities are traded on an exchange, and an investor may not be able to sell their shares immediately unless someone is willing to buy them at a suitable price.

Funds to Suit Every Investment Goal
Whether you're interested in current income, long-term growth or safety of capital, there is a fund to match your needs.

How do I select the right mutual fund for me?

Mutual funds vary considerably in terms of risk and potential return. Generally, an investor must be willing to accept a higher degree of volatility, or price fluctuation, to obtain a higher rate of return.

Every investor has a different tolerance level for risk. A Mutual Fund Investment Specialist at your local branch of Community Savings can help you determine your own investment profile, and recommend a suitable investment portfolio to match your tolerance for risk.

Members of Community Savings have access to over 1,000 mutual funds. Choose from Ethical Funds which is owned by the Canadian credit union system, or one of the Credential Platinum list of funds from fund companies such as Fidelity, AGF, Templeton or MacKenzie. Mutual funds are available for your non-registered investment account, RRSP, RRIF or RESP.

For more information, contact your Mutual Funds Investment Specialist or visit www.ethicalfunds.com   

* Mutual funds are offered through Credential Asset Management Inc. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated. ®Ethical Funds and The Ethical Funds Company™ are registered marks or trademarks owned by Ethical Funds Inc. and are used under licence. ®Credential is a registered mark owned by Credential Financial Inc. and is used under licence.