MUTUAL FUNDS

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When purchasing a fund there are a few general rules that one should follow. Compare apples with apples. For example a mutual fund evaluation should take into account both the type of fund and its investment objectives. Be wary of selecting a fund that has periods for which there are no comparable numbers for the performance of a market benchmark or a peer group of competing funds.
Source: Canadian Securities Institute

Types of Mutual Funds
  1. Money Market Funds
  2. Bond and Mortgage Funds
  3. Balanced Funds and Asset Allocation Funds
  4. Equity Funds
  5. Growth Funds
  6. Specialty Funds

The Andex Chart is an excellent overall picture of the economy from the 1950’s to the present. This is one of the best historical economic growth evaluators used by financial advisors.The Andex Chart shows how the overall economy fluctuates over time. Our economy follows what is called an economic or business cycle. In the business cycle there will always be recessions and economic booms however, in the long run our economy grows and increases in value. The Andex Chart shows this increase in value of mutual funds and other investment instruments by comparing Canadian, U.S, and World Indexes.

  1. If you had invested $100 in the S&P/TSX Composite returns Index your $100 would now be worth $37,800 with an average return of 10.9%
  2. If you had invested $100 in the World Markets Total Return Index your $100 would be worth $70,897 with an average return of 12.1%
  3. If you had invested $100 in the US Small Stock Total Returns Index your $100 would be worth $167,630 with an average return of 13.8%

Money can grow substantially if invested properly. A properly constructed financial plan can help you achieve this goal. With our approach to investing we can help you achieve this financial independence.