A mutual fund is a pool of capital raised by investors who share the same objectives.
The capital is invested in stocks, bonds or other securities, according to the investment policy of the fund.
Investment funds are managed by specialists who use research and analysis tools that are not available to the average investor to optimize returns.
Your rights
After you purchase mutual fund units, you are mailed a prospectus describing the funds or portfolios in which you have invested. This legal document will tell you about:
Your rights as an investor
Types of investments made by the funds in which you are investing
The investment objectives of the funds in which you are investing
The investment strategies of those who manage the funds
A list of the registered plans in which you can invest
Management fees that apply to your investments
Securities legislation generally grants you the right to terminate a purchase contract as well as to cancel subscriptions within a prescribed deadline.
