Mutual Fund Basics
With mutual funds, many people pool their money together and rely on a professional money manager to invest on their behalf. The mutual fund portfolio is a pool of investments created from the fund manager's investment decisions, which are held in trust on behalf of the individual investors. Each fund has a defined investment objective that determines the overall management of the fund and the type of investments held within it.
When you invest in a mutual fund, you purchase units in the fund, where each unit represents a share of the fund's value. There are several different types of organizations that offer mutual funds including banks, trust companies, independent financial advisors and investment dealers.
Learn more about mutual fund benefits and associated costs.
How to Invest
There is always a minimum investment amount for mutual funds, which varies among fund companies and individual funds. The amount usually falls anywhere from $500 to $2500. After making the initial minimum contribution, you can generally invest as little as $25 or more.
You may also set up a contribution plan with regular investments on a weekly, bi-weekly, semi-monthly, monthly or quarterly basis. By investing on a regular basis, you are able to take advantage of the benefits of dollar cost averaging, a strategy that can help you manage market volatility.
To learn more about individual RBC Funds and how they can address your investment objectives, access our Mutual Fund Updates. If you are ready to invest now, contact your advisor or explore the investment options available to invest with RBC Financial Group.
To learn more about mutual funds see below:
