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Mutual funds pool your investment dollars with those of many other investors. These investment products enable individuals to achieve adequate financial diversification and the added power of professional portfolio management even for the smallest investor.
Investors become part of the fund by buying shares or units in it. The manager invests the assets of the fund in either a single class of securities such as stocks or a mixture of investments, which could include any or all of the following:
- Common Stocks (both domestic and foreign)
- Preferred shares
- Bonds (Government and corporate, foreign and domestic)
- Mortgages
- Treasury Bills, Bankers Acceptances, commercial paper
- Derivative products such as Stock exchange index futures and others
Features Of Mutual Funds
- Professional Investment Management - Your money is invested by a team of professional money managers with years of experience in both portfolio analysis and fund management, and because of this, superior performance is achievable.
- Safety through Diversification - Because your funds are placed in many different investments, your return is not based on the performance of any single security
- Liquidity - Investment funds are not locked in for any specified period of time. Units are redeemed, on demand, by the fund itself.
- Preferred Tax Treatment on the growth of your investment because of the dividend tax credit and the fact that capital gains are only taxed at 50%.
- The Convenience of Accounting Services - Unit holders of non-registered investments receive the appropriate T-slips for tax reporting each year covering capital gains, dividend and interest income. Those whose investments are registered receive a receipt for their tax-deductible contributions.
- Small Monthly Minimums allow smaller investors to participate in investments they otherwise might not have enough money to invest in.
- Variety of Deposit and Withdrawal Plans
* Mutual funds provided through FundEX Investments Inc. |