if you want to know mutual funds then you should watch this ppt.

all about mutual funds

1. June 2019 Mutual Funds 101

2. Overview Mutual funds: What they are and how they work Performance and taxation Understanding risk and protection Buying and investment strategies Buying and investment strategies

3. What is a mutual fund? Mutual funds provide investors access to a diversified portfolio of investments Money you invest is pooled with other like-minded investors Money is invested on your behalf by qualified professionals, based on the objectives for the fund

4. Why invest in a mutual fund? Convenience Affordability Access to your money Professional Management Diversification Access to Markets

5. How does a mutual fund work? Every mutual fund has a specific investment objective, stated in the simplified prospectus . OBJECTIVE Managers invest the fund’s money in holdings aimed at meeting the investment objective. MANAGEMENT DAILY VALUATION Most funds are valued daily, which is then used to calculate the net asset value per share (NAVPS), the price at which units of the fund are bought and sold.

6. What is a prospectus? A prospectus is an owner’s manual for a mutual fund A legal document that the mutual fund company must file with securities regulators and update each year Contains important information such as the fund’s fees and charges, its investment objective, and its associated risk

7. Mutual funds fees Management Expenses The management expense ratio (MER) is an annual fee charged by the fund manager to a mutual fund to pay for costs associated with running the fund. Sales Fees Four different types of funds: Front-load fees – paid up front Deferred sales charge – paid upon sale of fund Low-load fees – paid upon sale, but lower than DSC No-load fees – no fees for investing in these funds Special Fees Do not always occur, but can include: Transfer fees Short term trading fees Annual RRSP, RRIF, or RESP trustee fee Account set up fee Processing fees

8. How do I make money on a mutual fund? Capital Growth When a fund’s underlying securities rise in value, the value of the fund’s unit costs reflects this rise, even if the securities have not been sold. Capital Gains Distributions At the end of the year, the fund distributes any gains that have been made from the sale of securities. The proportion of the gain you receive depends on how many units you own. Income Distributions Funds will earn interest and dividends throughout the year, and will distribute these to shareholders. The timing and amount of distributions depend on the type of fund.

9. Taxes on mutual funds The way you are taxed depends on whether you invest on an unsheltered or sheltered basis. Unsheltered Sheltered Capital Growth Upon sale, half of the gains of the fund are taxable Capital Gains Distributions Half of the annual distributions are taxable Not taxed until withdrawal Income Distributions Interest is fully taxable, dividends may be eligible for a tax credit

10. Tax sheltering RRSP Designed to create retirement income, your annual taxable income is reduced by the amount of your annual contributions, and your investments grow tax-free. RRIF Since an RRSP cannot be held beyond age 71, a RRIF allows you to gradually withdraw income during retirement. All withdrawals from a RRIF are treated as personal income. TFSA Contributions up to $6,000 can be made annually. Investments grow tax free and are not taxable upon withdrawal.

11. Tracking your fund’s performance Funds can be tracked through your online investment account or through the mutual fund company’s website Dynamic automatically provides account statements and periodic updates Fund Name Price $ 1 day $ chg 30 day % 3 mo % 6 mo % 1 yr % 3 yr % Inception (mm/ yy ) Dynamic ABC Fund 36.490 .0220 4.1 2.1 1.9 12.9 0.7 11.5 (10/85) Dynamic XYZ Fund 24.040 0.000 6.6 4.1 8.3 25.7 8.9 18.2 (09/98) Fund Name Asset Class Assets ($M) MER % Sales Charge Minimum Investment RSP Dynamic ABC Fund Canadian Focused Equity 1731.5 2.4 DSC 500 Yes Dynamic XYZ Fund Natural Resources Equity 638.3 2.7 DSC 500 Yes

12. What is asset allocation? A process in which you divide your investment money over the three main asset classes: Stocks Bonds Cash Academic research has found that asset allocation accounts for up to 80-90% of differences in portfolio performance

13. Understanding risk Risk is the chance that you will lose money There are many types of investment risk: Currency Liquidity Concentration Political Inflation Capital loss, etc. The longer the period that you invest your money, the less likely you are to suffer a net capital loss However, trying to avoid risk altogether may prevent you from realizing the best possible returns

14. How is my money protected? Mutual fund manufacturers in Canada are required to adhere to the rules and regulations set out by provincial regulators Mutual fund dealers must belong to either IIROC or the MFDA, two national self-regulatory organizations All mutual fund companies in Canada are required to create an Independent Review Committee to protect the interests of unitholders

15. Types of funds EQUITY FUNDS (DIVERSIFIED OR SPECIALTY) Equity funds invest primarily in shares of publically listed companies. Specialty funds can focus on one specific company size, industry, geographic region, etc . An asset allocation fund provides investors with a mix of the three main asset classes. Balanced funds are asset allocation funds that stick to a fixed proportion of stocks, bonds, and cash. ASSET ALLOCATION AND BALANCED FUNDS Income funds invest primarily in Treasury Bills, bonds, and preferred shares. INCOME FUNDS (LONG TERM OR SHORT TERM)

16. How can I buy a mutual fund? It is recommended that you buy mutual funds through your financial advisor, however you can also purchase them directly from a discount brokerage Can be purchased in lump sums or through regular scheduled contributions Any units you buy are priced daily at the net asset value per share (NAVPS)

17. How long should I hold a mutual fund? Four considerations: Fund Type Time Horizon Appetite for Risk Financial Plan

18. History of Dynamic Funds Dynamic Funds traces its roots back more than 60 years One of the first companies in Canada to offer professional investment management to investors of all backgrounds Dynamic Funds offers more than 70 funds covering every major market sector, geographic region, and investment discipline, managed by top portfolio managers in their fields

19. Important information This presentation has been prepared by 1832 Asset Management L.P and is provided for information purposes only. Views expressed regarding a particular investment, economy, industry or market sector should not be considered an indication of trading intent of any of the mutual funds managed by 1832 Asset Management LP. These views are not to be relied upon as investment advice nor should they be considered a recommendation to buy or sell. These views are subject to change at any time based upon markets and other conditions, and we disclaim any responsibility to update such views. To the extent this document contains information or data obtained from third party sources, it is believed to be accurate and reliable as of the date of publication, but 1832 Asset Management L.P. does not guarantee its accuracy or reliability. Nothing in this document is or should be relied upon as a promise or representation as to the future. © Copyright 2019 1832 Asset Management L.P. All rights reserved.   Dynamic Funds® is a registered trademarks of its owner used under license, and a division of 1832 Asset Management L.P. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. The indicated rates of return are the historical annual compound total returns including changes in unit values and reinvestment of all distributions does not take into account sales, redemption or option changes or income taxes payable by any security holder that would have reduced returns. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.