Fund Investment


An investment fund is a collective investment in securities. By purchasing units, you join other investors with objectives similar to your own. The pooled assets are entrusted to a portfolio manager, whose goal is to generate a return. Changes in the market will lead to fluctuations in unit value. Any profits or losses generated by the fund are distributed between unit holders in proportion to the number of units they own.


Professional Management

Portfolio managers use sophisticated tools to determine which securities to purchase and which investment options are best.


With even a modest sum, you can acquire shares in all of a fund’s securities, reducing the risk of asset concentration.

Buying Power

Investment funds give you access to specialty and international markets that would otherwise be reserved only for seasoned and/or wealthy investors.


It is easy to open and modify an account. The required upfront investment is often very affordable. You can also sell your units at any time.

Registered Plan Eligibility

Investment funds may be held in TFSAs, RRSPs, RRIFs, LIFs and other plans.


As a unit holder, you can benefit from investment income in the form of either cash or additional units.

This is called interest or dividend income. Disbursement frequency will vary according to the fund.

In addition, at the end of the year, the fund manager may decide to distribute the capital gains accumulated after having sold some of the securities in the portfolio.

These gains are distributed in proportion to the number of units held by each investor.

Some investment funds offer a fixed monthly distribution which has a fiscal benefit, which is an advantage for retirees.

Lastly, you stand to make a capital gain upon selling your units if they are sold for a higher price than you originally paid.

How to Choose

There are a number of funds on the market, which can be divided into three main categories.

Fixed Income Funds

Assets invested in treasury bills, government and corporate bonds, etc.

Growth Funds

A portfolio made up of shares from domestic or international companies

Balanced Funds

These include both shares and fixed income securities.

To find out which fund is best for you, you need to determine your investor profile. Your advisor will guide you through this essential process.

You will need to clearly answer three questions.

Your Objectives

You may be looking to accumulate capital for retirement or to finance a short term project, for example.

Investment Horizon

If you intend to keep your units for at least 10 years, you might opt for growth funds, which maximize their return potential over the long term.

Risk Tolerance

Your investment should not be a cause of concern in the event of a market downturn.