Advantages of Mutual Funds

Diversification - Each mutual fund is composed of a portfolio of many individual securities, i.e. you do not have all your eggs in one basket. This helps reduce the impact of any underperformed security in the portfolio.

Liquidity - Most mutual funds can be purchased or redeemed on short notice.

Professional management - The assets of a mutual fund are managed by a professional money manager who has the experience to make sound investment decisions on the investor's behalf.

Opportunities - Mutual funds make it possible for an investor to participate in a wide array of investments which individually were inaccessible.

RRSPs/RRIFs - Many mutual funds are available in Canada including some foreign content can be purchased for your RRSP or RRIF.

Bottom line: Mutual funds offer excellent opportunities to maximize your investment growth and allow you easily diversify your investments to minimize the risks.