Mutual funds are a "basket" of shares, bonds and/or other investments. Investors with a small amount of money can use mutual funds to diversify in different industries, countries and investment types to mitigate the risk of losing money by picking one bad investment.
Mutual funds are managed by professional portfolio managers. They select the investments held within the mutual fund based on the set criteria for the fund.
In Canada there are mutual funds to serve nearly every investor’s investment objectives, risk tolerances, and personal and financial circumstances: low-risk, high-risk; equities, fixed-income; Canadian, global and hard-to-reach foreign markets; and both mature and emerging companies.
Mutual fund investors can buy and sell almost anytime to invest or access their money. But you often must pay fees at the time you buy or sell your investment, along with management fees while you own the fund. Get the details from Fund Facts before you buy.