Mutual Funds What is a Mutual Fund? A mutual fund is a group of stocks, bonds and other investments that are owned by a large number of investors and managed by a professional investment company. The money you contribute to a mutual fund buys you shares, or units, of that fund. Investors should read the simplified prospectus before they purchase any mutual fund. A prospectus clearly defines a fund's investment objective, the investment style of the manager and the types of securities in which the fund will invest. Your financial advisor can help you determine if a mutual fund fits into your overall financial plan. How does a Mutual Fund work? When you invest in a mutual fund, you purchase a certain number of units of the fund. Your units, along with units held by other investors, represent ownership in the fund. A professional money manager takes the entire pool of money from all of the fund's investors and invests it in a carefully selected range of investments based on specific goals and procedures that are outlined in the fund’s simplified prospectus. The fund's value - and the value of your units - can go up or down from day to day. Some funds will fluctuate more than others and you will want to consider this factor when you choose a fund. The value of a fund's units is updated daily, based on the fund's performance. Many factors influence how your mutual fund performs, including the value of the underlying investments, changes in interest rates and other economic trends. When you purchase units in a mutual fund, you agree to pay certain fees and expenses, usually deducted directly from your investment. Be sure you understand these fees, as well as how to both buy and sell your units before you invest. What are the benefits of investing in Mutual Funds? 1. Professional money management – The pool of money that investors contribute is invested by experts in the financial markets. These money managers have the knowledge and information necessary to make informed investment decisions according to the fund’s objectives. 2. Diversification – Because investors contribute to a large pool of money, managers can easily diversify between many individual securities, so fund returns are not heavily dependant on the ups and downs of a few select investments. 3. Liquidity – Mutual funds are very convenient since they can be quickly bought and redeemed. Investors should read the simplified prospectus of the mutual funds they own for further details. 4. Choice – Depending on your financial goals and tolerance for risk there are a wide range of mutual funds available to you. Please seek the advice of a financial advisor to ensure that the investment you choose complements your overall financial plan. 5. Convenience – the mutual fund company does all the record-keeping, providing regular reports and the appropriate tax forms for your investments.
#102, 9802 97 Avenue Grande Prairie, AB T8V 7K2 Bus: 780-532-4400 Toll Free: 800-654-3684 Fax: 780-539-6669 E-mail:	Disclaimer: Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund's simplified prospectus before investing. Mutual fund securities are not guaranteed, their values change frequently and past performance may not be repeated.