When it comes to investing, mutual funds are a very popular choice: as of last August 31, Canadians were holding no less than $1,670 billion in mutual funds. This very simple financial instrument enables investors to gain exposure to a diversity of securities with a single purchase. However, mutual funds have some features that are not necessarily well known.
Here are eight things to (re)discover about mutual funds.
The following sources were used to prepare this article:
The Investment Funds Institute of Canada, “Our Industry” ; “IFIC Monthly Investment Fund Statistics – August 2020”.
Investopedia, “Toronto Stock Exchange” ; “The basics of determining taxes on mutual funds” ; “Mutual Fund”.
Get Smarter About Money, “7 common types of mutual funds”.
Actualis, “No more RRSP or TFSA room?”.