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How do mutual funds minimize exposure to single stocks?

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Diversification advantage Mutual funds offer the investor the benefit of maximum diversification, with minimal exposure to any one stock. You pool your investment with the combined capital of other investors, which allows everyone to invest in many companies, not just focus on two or three larger stocks.

Fund managers usually diversify among at least 20 companies, investing no more than 10% of the fund’s total dollars into any one security.

Other advantages of mutual funds

• You can buy additional units of a mutual fund at any time.

• An automatic purchase plan called dollar-cost averaging (DCA) lets you invest equal amounts at regularly scheduled intervals. You buy more fund units when the prices are lower, fewer when prices are higher, thus averaging out the price of the units purchased.

• Mutual funds can be registered in RRSPs or RRIFs.

• Dividends, where applicable, are easily reinvested.

• Some fund companies allow transfers between their funds without charge.

 

 


 

 

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Mutual Funds Disclaimer

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investment funds, including segregated fund investments. Please read the fund summary information folder prospectus before investing. Mutual Funds and/or Segregated Funds may not be guaranteed, their market value changes daily and past performance is not indicative of future results. The publisher does not guarantee the accuracy and will not be held liable in any way for any error, or omission, or any financial decision. Talk to your advisor before making any financial decision. A description of the key features of the applicable individual variable annuity contract or segregated fund is contained in the Information Folder. Any amount that is allocated to a segregated fund is invested at the risk of the contract holder and may increase or decrease in value. Product features are subject to change.

This material was prepared by Adviceon Media on behalf your Investment Advisor with Aligned Capital Partners Inc. (“ACPI”). This material is provided solely for general information and should not be considered individual investment advice or construed as an offer or solicitation to buy or sell securities. The information contained herein may not apply to all types of investors. Before acting on this material, please seek professional advice, as appropriate, based on your personal circumstances. All opinions expressed and information provided herein are subject to change without notice. Although this material has been compiled from sources believed to be reliable as at the date of publication, we cannot guarantee its accuracy or completeness. All charts and illustrations in this document are for illustrative purposes only and they are not intended to predict or project investment results. In considering any particular investment, please remember that past performance is no guarantee of future performance. ACPI is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and the Canadian Investment Regulatory Organization (“CIRO”). Investment services are provided through Progress Private Wealth Inc. of ACPI, an approved trade name of ACPI. Only investment-related products and services are offered through ACPI/Progress Private Wealth Inc. and covered by the CIPF.

 

 

 

Aligned Capital Partners Inc. (“ACPI”) is a full-service investment dealer and a member of the Canadian Investor Protection Fund (“CIPF”) and Canadian Investment Regulatory Organization (“CIRO”).  Investment services are provided through Progress Private Wealth, an approved trade name of ACPI.  Only investment-related products and services are offered through ACPI/Progress Private Wealth and covered by the CIPF.

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