What is a mutual fund?

A mutual fund is an investment that pools your money with the money of many other people.

Professional portfolio advisors use that money to buy securities that they believe will help achieve the fund's investment objectives. These securities could be stocks, bonds, mortgages, money market instruments, or a combination of these.

When you invest in a mutual fund, you receive units of the fund. Each unit represents a proportionate share of all of the mutual fund's assets. All of the investors in a mutual fund share in the fund's income, gains and losses. Investors also pay their share of the fund's expenses.

Why invest in mutual funds?

Mutual funds offer investors three key benefits: professional money management, diversification and accessibility.

Professional money management

Professional portfolio advisors have the expertise to make the investment decisions. They also have access to up to the minute information on trends in the financial markets, and in-depth data and research on potential investments.

Diversification

Because your money is pooled with that of other investors, a mutual fund offers diversification into many securities that may not have otherwise been available to individual investors.

Accessibility

Mutual funds typically have relatively low investment minimums, making them accessible to nearly everyone.
While mutual funds have many benefits, it is important to remember that an investment in a mutual fund is not guaranteed.

How do I choose the right mutual funds?

To decide which investments are best suited to you, you need to determine your investment objectives, time frame, and tolerance for risk. Filling out our Investment Selector and talking to an MCB accredited sales representative can help you determine the right investment portfolio.