Mutual Fund Basics

What is a Mutual Fund?

A Mutual Fund¹ is a type of investment in which the money of many investors are pooled together to buy a portfolio of different securities. The fund is managed by professional Investment Managers who invest in stocks, bonds, options, money market instruments, or other securities.

When you invest in a Mutual Fund, you receive units of the fund. Each unit represents a proportionate share of all of the Mutual Fund's assets. All of the investors in a Mutual Fund share in the fund's income, gains, and losses. Investors also pay their share of the fund's expenses. Mutual Funds can help you grow your savings while managing liquidity and risk.

While Mutual Funds have many benefits, it is important to remember that a return on an investment in a Mutual Fund is not guaranteed.

Why Invest In Mutual Funds?

Mutual Funds offer investors three key benefits: professional money management, diversification, and accessibility.

Professional money management: Professional Investment Managers have the expertise to make the investment decisions. They also have access to up-to-the-minute information on trends in the financial markets, and in-depth data and research on potential investments.

Diversification: Because your money is pooled with that of other investors, a Mutual Fund offers diversification into many securities that may not have otherwise been available to individual investors.

Accessibility: Mutual Funds typically have relatively low investment minimums, making them accessible to nearly everyone.

How do I choose the right Mutual Funds?

To decide which investments are best suited to you, you need to determine your investment objectives, time frame, and tolerance for risk. Filling out our Investment Selector and talking to a Scotiabank Investment Advisor can help you determine the right selection of Scotiabank Mutual Funds for your portfolio. You can also check the current pricing of our Mutual Funds at any time (closing prices updated daily).