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

Submitted by nsscadmin on Wed, 01/13/2021 - 12:50

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
Fund-of-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.

Failure to file annual financial statements.
Failure to file interim financial statements.
Failure to file an annual or interim management’s discussion and analysis (MD&A) or an annual or interim management report of fund performance (MRFP).
Failure to file an Annual Information Form (AIF).
Failure to file a certification of annual or interim filings required by Multilateral Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings (MI 52-109).
Failure to file required proxy materials or a required information circular.
Failure to file an issuer profile supplement on the System for Electronic Disclosure by Insiders (SEDI).
Failure to file a material change report.
Failure to provide a written update after filing a confidential report of a material change.
Failure to file a business acquisition report.
Failure to file annual oil and gas disclosure prescribed by National Instrument 51-101 Standards of Disclosure of Oil and Gas Activities (NI 51-101) or technical reports for a mineral project required under NI 43-101 Standards of Disclosure for Mineral Projects (NI 43-101).
Failure to file a mandatory news release.
Failure to file corporate governance disclosure as required by national Instrument 58-101 Disclosure of Corporate Governance Practices (NI 58-101).
Failure to file audit committee disclosure as required by Multilateral Instrument 52-110 Audit Committees (MI 52-110) or BC Instrument 52-509 Audit Committees.
Failure to include disclosure in an issuer’s MD&A relating to disclosure controls and procedures and their direct effectiveness that is referred to in a certificate filed under MI 52-109.
Financial statements of the reporting issuer, or the auditors’ report accompanying the financial statements, do not comply with the requirements of NI 51-102 Continuous Disclosure Obligations (NI 51-102), National Instrument 81-106 Investment Fund Continuous Disclosure (NI 81-106) or National Instrument 52-107 Acceptable Accounting Principles, Auditing Standards and Reporting Currency (NI 52-107).
The reporting issuer has acknowledged that its financial statements, or the auditors’ report accompanying the financial statements, may no longer be relied upon.
The reporting issuer’s AIF, MD&A, MRFP, information circular, or business acquisition reports do not contain information for each of the content items required by NI 51-102 or NI 81-106.
The reporting issuer’s technical disclosure or other reports do not comply with the disclosure requirements of NI 43-101 or 51-101.
Failure to pay a fee required by the Act or the regulations.
Failure to comply with any other requirement related to continuous disclosure.