More About Canadian Mutual Funds
Canadian are similar to US mutual funds: they are a collective type of investment in which participants pool in and provide the financial resources to buy stock, bonds and other assets. Despite the very many similarities, it is tricky to treat US and Canadian as identical because the subtle differences could make the element that separates profits from pitfalls. The history of the Canadian goes back to 1932 when the Canadian Investment Fund was created with a value of $51 million. In 2007, the same fund had a $402 million total value. Following the example of the US Congress, the Canadian parliament also passed laws and regulations to increase the stock market stability, which led to an accelerated development of Canadian back in 1960s. At present, with a 90-year history, this kind of investment continues to enjoy a very good reputation in North America. There are three major types of Canadian mutual funds: open-end funds, exchange-trade funds and equity funds. With open-end funds the investors are free to enter or leave the pool, and the shares are bought and issued daily. Exchange-traded funds resemble the open-end model but they are characterized by large shares sold cheaper. They are the newest type of Canadian mutual

funds. Equity funds are preferred by investors that target specific goals, and they depend on strategically structured stocks. The Canadian mutual fund market is supported by 50 million Canadian citizens and residents. The increase in popularity became more obvious in the 90s, and at present there are around 1,500 available for private investors. The largest of all Canadian funds is presently owned by IGM Financial Inc. Mention must be made that investors interested in Canadian should be aware of the commissions charged by brokerage companies. An individual investor has quite a lot of fees to cover for management. In other words you pay a corporation or a firm to manage, trade and buy shares in for you. The company offers all the financial expertise necessary to determine the right trading decisions based on the market state. Some Canadian charge non-management fees that cover registration, mailing costs and lots of other expenses. Before you invest your money, it is wise to ask for a list with all the expenses that will appear during your collaboration with a specific fund. Otherwise, Canadian offer more stability and better chances for profit than individual investment in stocks.