Why mutual funds?

What is a mutual fund?

A mutual fund pools money from many different investors and invests the money in stocks, bonds, short-term money market instruments, or a combination of these.

Why invest in mutual funds?

Mutual funds offer you three key benefits:

1. Professional Money Management

Professional portfolio managers are trained to make 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.

2. 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 you. The fund’s management team will also seek the right mix of asset classes and securities based on the goals and strategy of the fund. They work to achieve the ideal level of diversification, minimizing risk and maximizing your returns.

3. Accessibility

Mutual funds offer two kinds of accessibility. First, they make global markets accessible to every investor, opening up the opportunity to participate in capital markets across the globe. With offices in Canada, the United States, Europe and Asia, our investment management teams are equipped to provide clients with the best investment opportunities worldwide. Second, mutual funds are a very liquid investment, which means that your money is always accessible to you. Some investments require you to lock in for a set period; with mutual funds, you can buy and sell with ease.

No Guarantees Unlike bank accounts or guaranteed investment certificates (GICs), mutual fund units are not covered by the Canada Deposit Insurance Corporation or any other government insurer. Your investment in the ScotiaFunds is not guaranteed by Scotiabank.