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What is Investment Funds
An investment fund provides a broader selection of investment opportunities, greater management expertise and lower investment fees than investors might be able to obtain on their own. Types of investment funds include mutual funds, Segregated funds, exchange-traded funds, money market funds and hedge funds.
An investment fund is a way of investing money alongside other investors in order to benefit from the inherent advantages of working as part of a group.
Mutual fund and Segregated fund is what we specialize at which are the two most popular investments in Canada.
Mutual Fund
Mutual Fund is a type of financial vehicle that invests a made up of a pool of money that investors put in to invest in securities such as stocks, bonds, money market instruments and more. Basically, mutual funds created a way for everyone to have the chance to invest in securities without necessary being a savvy investor.
Mutual funds are managed by fund managers who are expert at creating a diverse portfolio, so people can invest comfortably. This way people do not have to keep buy and sell shares on the stock market, they can invest in a portfolio that they like, and fund manager will monitor it.
A mutual fund is at its core a managed portfolio of stocks and/or bonds. You can think of a mutual fund as a company that brings together a large group of people and invests their money on their behalf in this portfolio. Each investor owns shares of the mutual fund, which represent a portion of its holdings.
However, this does not mean that mutual fund won’t lose, the market will go up and down and that is the fact about every market. However, the market going down is not necessarily negative because it creates an opportunity to invest and maximize profit. Remember when the market goes down it will come back up and if you gain more than you lose you will win it’s that simple.
The main cause of loss in mutual fund market is the emotion because when the market shows volatility emotion dictates the decisions. Therefore, make sure to find an advisor that you like and trust who can help you understand the events happening in the market.
Never the less, if you find your investment tolerance and a fund that suits you the best, you are going to enjoy the mutual fund market and grow your assets. At Apluswealth we focus on finding the best possible funds that suit our client needs and to make sure that the investment portfolio is performing to client expectations.
Segregated Fund
Segregated Fund is a type of investment fund used by Canadian insurance companies to manage induvial, variable annuity insurance products offering certain guarantees to the policyholder such as reimbursement of capital upon death.
Segregated funds are quite like mutual funds except it has a few guarantee features.
Just like mutual fund you can pick and choose funds and find the portfolio that suits your investment style; however, in Segregate fund there is no need to be a concern with markets fluctuations since there is a principal guarantee on maturity and death.
The segregated fund also offers creditor protection which in case of any unfortunate financial tragedy that your assets get confiscated, your segregated fund investment remains intact. Another interesting feature of the segregated fund is probate bypass which allows the investment in seg fund to be transferred the o beneficiary without them having to pay the probate fee. Probate fee in each province is different for example in Ontario probate fee is 1.5 percent of a deceased’s gross value of assets.
Segregated fund is an amazing investment tool that gives good returns as well as provides investors with guarantees and protections. Here at Apluswealth, our goal is to help investors gain excellent returns and have a peace of mind so they won’t lose their sleep due to market volatility.
You ask the question, we will find the answer
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