Mutual Funds *

A Little More Risk For A Lot More Gain

A mutual fund pools money from several contributors to invest in various stocks, bonds and markets. There is some volatility associated with mutual funds, as it is impossible to be certain of the stocks' future performance. However, this also allows for very quick growth of your money. Select mutual funds provide guarantees and safety nets to ensure no significant financial losses. Additionally, most funds require only a minute initial investment (as low as $100), making them incredibly affordable. All in all, mutual funds can be an exceptionally lucrative investment option.

There are thousands of different mutual funds offered by a variety of financial institutions. These can be categorized into several types: cash equivalent funds are a stable choice, low risk and short-term, with monies usually invested in guaranteed Government of Canada assets. Equity funds are designed for long-term growth. Income funds are medium-term, with a potential for higher income, but are understandably riskier. Balanced funds and index funds are long-term, medium risk investments and often only require a very low initial investment.

Furthermore, mutual funds can be both domestic and foreign. The latter often invests in emerging markets with high economic growth, such as the BRIC economies of Brazil, Russia, India and China. A sometimes confusing difference is between international and global funds. Global funds may be invested anywhere, both domestic and foreign, while international funds do not include North American markets.

With all this jargon, it can be easy to be intimidated and confused by mutual funds. FTIC will do all the work for you, finding the perfect mutual funds that suit your particular needs and desires. We'll carefully outline every option and make it simple to understand so you can have the peace of mind knowing you get the most out of your investments. Call FTIC today.

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