mutual funds

Money market mutual funds are mutual funds that invest in very short-term, highly liquid securities which are considered safe havens such as government securities or T-bills, certificates of deposit, and commercial paper. The funds are easily accessible and are as good as savings accounts in terms of liquidity. Money market mutual funds usually come with […]

One question that often comes up when deciding on how to invest is the choice of investment vehicles.  If you want to buy low cost investments then index funds and exchange traded funds (ETFs) are the best choices. Most investors are better off with index funds for a number of reasons – however it really […]

If you own a mutual fund, index fund or exchange traded fund (ETF) then you pay a fee called the management expense ratio (MER) or “expense ratio”.  This money goes to pay for the cost of running the fund.  It’s important to note that this fee is not directly charged to the investor but rather […]

Index Funds

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An index fund is a mutual fund that invests in the same stocks that are contained in a stock market index, in the same proportion as the stock index. Imagine a stock index – let’s call it the ABC index – that contains 2 stocks:- American Express and Kraft.  Let’s say that the ABC index […]

Target retirement funds are mutual funds that are geared toward investors that have a specific target retirement date.  The idea behind these funds is they change their asset allocation over time to meet the needs of the investor. If your planned retirement date is far away (say 25 years) then the fund will have a […]

Many mutual funds invest mostly in stocks or bonds.  Balanced,asset allocation, and target retirement funds invest in stocks, bonds and cash. Reasons behind these funds One stop shopping – Rather than an investor buying an stock fund and a fixed income fund, they can just buy one balanced fund which will simplify their portfolio. Manage […]

Mutual Funds

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Mutual funds are investment funds that are run by a professional portfolio manager.  The portfolio manager uses their knowledge and experience to decide what the best investments are for their mutual fund. There are many types of mutual funds which can invest in different combinations of investments depending on the type of the fund.  All […]