The safest place for your money in 2022, and beyond, is not in banks. Putting your money in banks is just like putting your ice on the table. Little by little, the ice will melt until nothing is left. Put your money in investments. Not in banks. The only money you should put in banks are your emergency funds, or funds you are saving for investment purposes. Other than that, your money should be invested. What do banks do with the money you deposit? They invest it. Why not do what they do too? Invest in crypto, shares, mutual funds, treasury bills, The Gold ETF. When you buy liabilities, you make others rich. When you buy assets, you make you wealthy!
What Is a Mutual Fund?
A mutual fund is a type of financial vehicle made up of a pool of money collected from many investors to invest in securities like stocks, bonds, money market instruments, and other assets. Mutual funds are operated by professional money managers, who allocate the fund's assets and attempt to produce capital gains or income for the fund's investors. A mutual fund's portfolio is structured and maintained to match the investment objectives stated in its prospectus.
Mutual funds can save you money, too. Mutual funds can affect your savings directly (as in how much they increase in value) and indirectly (as in how much you save). “At Educators, we know that education members have different reasons to save.
Their retirement is longer than most. Or they’re saving for that 4 over 5. Mutual funds can be one of the ways they can maximize their savings”, says Karen Hubbard, Regional Vice-President, Client Advisory Services, Educators Financial Group. Many experts say that one of the prime advantages of mutual funds is the professional management they provide for your money.
That’s because the cost of mutual funds makes professional advice available to all Canadians, whether the amount they have to invest is large, small, or somewhere in between. In fact, 19% of mutual fund investors had less than $5,000 in financial assets when they first started using an advisor and 50% had less than $25,000*. With mutual funds, you’ll also benefit from economies of scale.
That’s because a mutual fund buys and sells large amounts of securities at one time, so its transaction costs are lower than what you would incur for securities transitions as an individual. Yet another benefit if you happen to be investing a smaller amount of money, because it allows you to participate through a ‘pooled’ approach. If you were trading stocks and bonds as an individual, it would cost a lot more.
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