When you buy a mutual fund, your money is being pooled with other investors’ money to purchase a variety of investments, such as stocks, bonds or other products. These funds are “open-ended”, which means the fund issues new units or shares as more people invest. Because of this, you are able to invest in a wide range of investments for a relatively low cost. Your share of the fund (usually measured in “units”) will increase or decrease in value depending on the performance of the assets held within the fund.
A mutual fund is managed by a professional with proven skills and expertise. Their goal is to increase the overall value of the fund. The manager has the ability to create unique portfolios using a variety of investment products. In some cases, this includes products that may not be available to the public. Also, the fund manager will make the buy-and-sell decisions for you. With a mutual fund, you can rest easy knowing your money is in good hands.
By working with us, you are more likely to see your money grow because we will be able to recommend a suitable fund with a great fund manager. Further, we will be able to recommend when it might be time to move out of a particular fund if it begins to struggle to perform as effectively. Click here to book your free consultation with one of our financial planners today.