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Diversification
Your mutual funds pool money from multiple investors to invest in a diversified portfolio of stocks, bonds and other securities. This diversity helps spread the risk associated with investing.
Accessibility
Mutual funds are for everyone, whether you're new to investing or have experience. You don't need a lot of money to begin investing – even a small amount can get you started.
Convenience
Mutual funds offer a simple way to invest in a mix of assets without requiring you to do a lot of research or constantly manage your investments.
People often ask what the difference is between a mutual fund and an exchange-traded fund (ETF). Both are types of pooled investment funds, but the main difference is how they’re bought and sold. ETFs are bought and sold on a stock exchange, just like stocks, and are traded whenever the stock market is open. ETF prices continuously fluctuate. Mutual funds are bought through your advisor directly from the mutual fund company issuing units and are priced only once per day based on their net value. To learn more about the differences, Qtrade Direct Investing® takes an in-depth look at ETFs and mutual funds.
You can choose from different mutual funds, and an advisor can help you pick the right one for you. You can use mutual funds for things like saving for retirement, building wealth, earning regular money, or paying for education. They work best for your goals that are medium or long-term.
You’ll typically pay taxes on the earnings you make from a fund, with interest, dividends, and capital gains being treated differently for tax purposes. However, if your mutual fund is held within a registered plan, you won’t incur income tax as long as the money remains in the plan.
Mutual funds don’t earn a fixed interest rate, so they don’t accumulate compound interest. Instead, your investment grows over time through a process known as compounding, where your investment multiplies. There’s no limit on how much you can contribute to a mutual fund, but there may be restrictions imposed by the mutual fund company or the investment platform used.
An RRSP is a government-registered retirement savings plan that offers tax benefits today by reducing your current income tax, and it allows your money to grow tax-free until retirement when you'll likely be in a lower tax bracket. It's a smart step for your financial future.
If you're 18 or older in Saskatchewan and have a valid social insurance number (SIN), the TFSA is your gateway to saving and earning money without the burden of taxes. With a TFSA, your contributions and the income you generate within the account are tax-free, even when you decide to make withdrawals. It's a lifelong opportunity to grow your wealth while keeping more of what you earn.
At Conexus, we have a range of investment accounts designed to help you achieve your financial goals. Explore the benefits and differences of popular accounts like a TFSA, RRSP, RESP, and more.
Have questions? That’s what we’re here for!
Give us a call
Have questions about which investment option is most suitable for you?
Schedule an appointment
Want to learn more about investing? Book an appointment with one of our advisors.