【正文】 21D e c2021Jan2021F e b2021M a r2021A p r2021LongTerm StandAlone Funds Fundof Funds Source: The Investment Funds Institute of Canada 6 1. MUTAL FUNDS What is a Mutual Fund? ? A MF is a separate, legally incorporated, equityfinanced investment vehicle managed by an asset manager for the benefit of the equity investors. ? A MF pools the resources of many small investors by selling them shares and using the proceeds to invest in securities (., stocks, bonds, options, futures, currencies, or money market securities. ) 7 Mutual Funds Fund Parent Co. Dec ’04 Assets ($billions) 1 IGM Financial (Investors, Mackenzie Financial) Power Corp of Canada 2 RBC Asset Management Inc Royal Bank 3 . Mutual Funds Inc. Independent 4 Aim Trimark Investments AMVESCAP PLC, . 5 CIBC Asset Management CIBC 6 TD Asset Management Group TD Canada Trust 7 Fidelity Investment Canada Ltd Fidelity Investments, . 8 AGF Management Limited Independent 9 Franklin Templeton Investments Franklin Templeton Inv. US 10 BMO Investments Inc. Bank of Montreal Total Assets Big Six Banks subsidiaries. MF of $ (1/3 of total in 2021) 8 Advantages of investing in MF ? Record keeping and administration ? Diversification and divisibility (see graph on the advantages of global diversification) ? Professional Management ? Lower Transaction Costs 9 Types of MFs 1. Equity Funds: Value Firms: High dividend yields 2. FixedIne (bond) Funds 3. Balanced Funds (money market, equity and bonds) 4. Growth Funds: Growth firms. 5. Specialized Funds: Specific economic sectors, and regions 6. Money Market Funds: Tbills, BAs, term deposits, provincial shortterm notes, mercial paper. 7. Index Funds. They try to replicate an index. Example: Samp。 Johnson Top Ten Equals % of Total Net Assets 12 Vanguard 500 Index Fund Investor Shares (VFINX) Average annual performance As of 04/30/2021 1 Year 3 Year 5 Year 10 Year Since Inception 8/31/1976 500 Index Fund Inv –% –% –% –% % S