CWB Canadian Western Financial


Learn as you go.


    To fully understand if and how a mutual fund can work for you, it’s important to understand the basics:

    • A mutual fund is a pool of investments that is managed by a professional investment manager.
    • Your money is combined with other investors' so that you can gain access to a wider range of investments than you normally would have access to.
    • Each fund has a defined investment objective that determines the overall management of the fund and the types of investments that can be held in it.

    There are mutual funds available for almost any investment, from government and corporate bonds to mining companies, real estate and foreign companies, among others.

    Some mutual funds are designed to provide a regular income. Others are for long-term growth and others are for a balance between these goals. Though there are thousands of different investments available, they generally fit into three basic categories:

  1. Equity securities, or stocks, are shares in a company.
  2. Fixed income securities, including bonds, are the obligations of a company or a government to repay a sum of money, usually with interest.
  3. Cash and cash equivalents are short-term investments. Investors generally put their money in cash when they need to get it quickly or when they’re waiting for the investment situation to become clearer.

    Professional management: With mutual funds, a professional money manager is responsible for the day-to-day investment decisions. The money manager is an expert and has been trained to make investment decisions. They have access to information and research unavailable to individual investors. Rather than you having to research every investment within the mutual fund before deciding to buy or sell, the money manager will decide the best mix of investments and will manage it all on behalf of the fund's investors.

    Diversification: Diversification is key when it comes to investing. It allows you to minimize your investment risk because not all of your eggs are in one basket. Since mutual funds can invest in many things, your money is no longer dependent on the performance of one investment, but instead the average performance of all the investments held within the mutual fund. There is a wide variety of mutual funds that can meet all your investment needs.

Flexibility: For a minimum initial investment of only $500 you have access to a professionally managed portfolio. You can also establish a regular investing program for only $25 per month. You can choose the frequency that works best for you whether that's weekly, bi-weekly or monthly.

Record keeping: Mutual fund companies send you regular tax slips and statements to help you keep track of your investments.

First you have to decide what kind of investments you want and how much money you want to invest (both initially and on a regular basis). You can buy mutual funds from CWF, which is a registered dealer.

CWF’s knowledgeable mutual fund sales representatives can help you make your investment decisions by providing advice and recommendations. You will then be able to purchase the appropriate funds for your investment goals. When you invest in a mutual fund, you purchase units of a fund, where each unit represents a share of ownership of the fund’s value.