Question of the Week: What are the different types of mutual funds?

With income tax time coming up many investors may be thinking about contributing to their RRSP before the end of the annual contribution period. Many investors will do this by investing in mutual funds. If you are investing in mutual funds you should know that there are several different types of mutual funds. The type of fund you invest in determines several things that are important to know. Some of these include, your mix of investments, the type of investments in your fund, the amount of risk you’re taking on, and if you are an active or passive investor.

Over the next few months we’ll take a closer look at some of the more common types of mutual funds you may come across when investing. This will allow novice investors to identify the differences between funds and allow anyone visiting our site looking for information on a specific type of fund to more easily find it. Here is a list of the funds we’ll be looking at throughout the series.

Money Market Funds
Fixed Income Funds
Equity Funds
Balanced Funds
Index Funds
Specialty Funds

You can come back to our blog each week to find a new post or revisit this post for updated links to each new post.

Each post will describe the fund, but it is not an investment recommendation. and should be construed as advice. The Nova Scotia Securities Commission does not provide investment advice. We are not advising, or recommending that investors purchase the mutual funds in our posts. The posts are simply to educate investors so they can be an informed investor when making investment decisions.