Over 3,000 Mutual Funds. Sound Investing. Trusted Advice.

Capital City Savings knows your financial needs go beyond traditional banking products.  Through Credential Securities Inc. and Credential Asset Management Inc., we can offer you a comprehensive line of investments, including over 3,000 mutual funds such as AGF, Dynamic, Fidelity, Franklin Templeton, Trimark, Ethical Funds ® , and more.

The following frequently asked Q & As are provided to help you answer any questions you may have about mutual funds.

1. What are mutual funds?
2. What are some of the benefits of investing through a mutual fund?
3. What are some risks of investing in mutual funds?
4. How do I choose the mutual fund best suited to my needs?
5. How will I know how my mutual funds are performing?
6. What are the various commissions or fees associated with mutual fund investing?
7. Are there any tax benefits to investing in mutual funds?
8. Is there a minimum investment required?
9. How do I get started investing in mutual funds?
10. Glossary of Fund Types

A pool of money that represents the financial resources of thousands of individual investors who share the same investment objective.  The money is invested on their behalf by a professional investment manager.  Important information for investors is contained in a document called a prospectus that each mutual fund is required to issue.  It is important to obtain a copy of the prospectus and read it carefully before making an investment.

Mutual funds are a convenient method to invest your savings in different types of investments.  An investment in a single mutual fund provides you with the diversification that only a large investment portfolio can provide (eg. diversification by type of asset, industry, company, or different countries)
You benefit from the expertise and experience of the professional investment managers that select and continually monitor the individual investment of the fund Investment liquidity - you can redeem your units through the fund management company

3.  What are the risks of investing in mutual funds?

Generally, in order to obtain a potentially higher rate of return it is necessary to take more risk with your capital.  Some savings vehicles (such as savings accounts, term deposits/GICs and Canada Savings Bonds) guarantee the safety of your capital but the trade-off is a lower rate of return.  Mutual funds have different degrees of risk associated with any type of mutual fund and each specific fund varies.  Both your expectation for return and tolerance for risk are carefully considered when a Credential Securities Inc. Investment Advisor or Credential Asset Management Inc. Mutual Funds Investment Specialist recommends any mutual funds to you.

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4.  How do I choose the mutual fund best suited to my needs?

With over 3,000 different mutual funds to choose from, Credential Securities Inc. Investment Advisors or Credential Asset Management Inc. Mutual Funds Investment Specialists are trained to review your current financial position, identify your future goals, and determine the investment mix best suited for your unique needs.  From this information, a portfolio of recommended mutual funds is created that correspond to your objectives.

5.  How will I know how my mutual funds are performing?

You will regularly be provided with an account statement that is straightforward, useful and comprehensive.  In addition to details of any activity in your account, the statement includes details of all your holding and their current market value.

6.  What are the various commissions or fees associated with mutual fund investing?

There may be a purchase cost or sales commission at the time of investing. In addition, the mutual fund itself may charge ongoing fees and expenses. A Credential Securities Inc. Investment Advisor or Credential Asset Management Inc. Mutual Funds Investment Specialist would be happy to explain the difference between "front-end load", "deferred sales charge" and "no-load" as well as the various management fee structures of different mutual funds.

7.  Are there any tax benefits to investing in mutual funds?

Yes, many mutual funds can be held in an RRSP.  This allows you to claim the investment as a contribution to your RRSP (up to Canada Revenue Agency specified limits) thereby reducing your taxable income. In addition, money invested inside an RRSP grows faster than outside because earnings compound tax-free as long as the funds are held in the RRSP.

8.  Is there a minimum investment required?

Most mutual fund companies have a minimum initial purchase of $500.  Also available are periodic investment plans, whereby a fixed amount is automatically withdrawn from your chequing account and invested on a monthly or quarterly basis.

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9.  How do I get started investing in mutual funds?

To invest in your future in mutual funds, contact a Credential Securities Inc. Investment Advisor or Credential Asset Management Inc. Mutual Funds Investment Specialistat at (780) 496-2000 or toll free at 1-877-496-2151 or email us today.

10.  Glossary of fund types:

Balanced Fund
Has an investment policy of "balancing" its portfolio generally by including bonds and stock in varying proportions influenced by the fund's investment outlook

Bond Fund
The portfolio consists primarily of bonds

Dividend Fund
Invests in common shares of senior Canadian corporations with a history of regular dividend payments at above average rates, as well as preferred shares

Equity Fund
Portfolio consists primarily of common stocks

Income Funds
Invest primarily in fixed-income securities such as bonds, mortgages and preferred shares.  Their primary objective is to produce income for investors, while preserving capital

Money Market Fund
Invests primarily in treasury bills and other low-risk, short-term investments

®Credential Direct is a registered mark owned by Credential Financial Inc. and is used under licence. ® Ethical Funds is a registered mark owned by Ethical Funds Inc. and is used under licence.