Types of Mutual Funds
With the diverse array of mutual funds available including money market funds, fixed income funds, Canadian equity funds, international equity funds and balanced funds, you can build your portfolio with investments that complement your investor profile and investment objectives.
Money Market Funds
These types of funds invest primarily in Treasury Bills and other high quality, low risk short-term investments. Offering stability and minimal risk, money market funds deliver returns in the form of regular monthly distributions that are typically better than those of a traditional bank account. Investors looking to meet short-term goals or to access funds in case of emergency often choose money market funds as an investment solution.
Back to top
Fixed Income Funds
By investing in fixed income securities such as mortgages, bonds and preferred shares, fixed income funds offer regular cash flow while preserving capital. These funds typically distribute interest income and provide potential for capital gains. Fixed income funds may also be used as a way to diversify an investment portfolio.
Back to top
Balanced Funds
Balanced funds hold a combination of equities, fixed income and money market investments. The portfolio manager adjusts the asset mix based on the objective of the fund and his or her view of the economy. Investors receive distributions in the form of interest, dividends and capital gains.
Back to top
Canadian Equity Funds
With Canadian equity funds, investors gain the opportunity to experience the growth and diversity of the Canadian economy by investing in shares of Canadian companies. Offering a range of funds that span from relatively stable dividend funds to more volatile sector funds, Canadian equity funds are ideal for investors looking for potential growth over the long-term.
Back to top
International Equity Funds
These funds invest in equities outside of Canada, creating an additional opportunity to diversify and to experience the growth potential of companies within other countries. By including international equity funds in a portfolio with a strong concentration of Canadian investments, investors can manage the risk associated with fluctuations in the Canadian economy.
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:
