Mutual funds allow you to play in the big leagues Loma Fadden Contributing Writer MORE and. more Canadians are expe- riencing the benefits of investing their hard-earned money in mutual funds. In fact, mutual funds comprise the fastest gtowing investment market in Canada. A mutual fund allows you to invest together with other people who share similar investment - Its almost like a large-scale investment club. But unlike an investment club — where every- one votes on where their money ought to go — a mutual fund employs a group of managers to _ look after the cash. All finds invest in a blend of three basic areas. Bond finds track loans made to govern- -- fnents and . businesses. Equity funds invest in businesses by size, sector, profitability or other ‘ ctiteria, while Money Market funds invest in ~~ short term securities — the “spare change” that gavernments and corporations have ging around. : - Mutual fueds have several benefits: & Economics of scale — money talks; big money talks louder. Mutual funds hold millions, if not billions, of assets. High-powered financial experts of every breed, who would ordinarily be _.. available ‘only to the very wealthy, become. the gradians of your wealth. oh buy lov. magi gain enough buying power to grba Tees of tenders of different financial ~ instruments, something you couldn’t do before. - This helps to diversify your investments, making - them stable. - . Karen Law : Wednesday, February 2 7t0 10 pm. $65° B They can make up a substantial portion of sav- ings for your RRSP portfolio. Mutual funds pro- vide a vehicle for tax-free investing und! you reach your golden years. @ Mutual funds are easy to buy and someone else looks after them for you. That makes them about the most convenient way to save money in the financial markets. @ And finally, they are highly liquid investments, easy to convert into cash. Random meteor strikes not covered by your homeowners insur- ance? Simply sell your find and use the money to mend the smoking hoiz in the roof. Once you have a clear idea of what sort of fund you are looking for, the next step is to look at “Mutual Fund News.” You should always ask for a free copy of the fund’s prospectus, where all the important stuff like the fund’s objectives. its assets under man- agement and the total fees and costs you can expect to pay are hidden. Read it carefully, and compare it to other funds. A a little time now can mean a lot more money later. Remember, though, to always compare your fund to others in the same category and over the same time period to get a reasonable indication of how well it is doing. Don’t. forget, investments may fluctuate. This could mean that you come out with less money than you went in with, at least in the short term. ; The basic rule? Know how much money you can afford to lose, and how much you might need to get your h ads on in a hurry. —Lorna Fadden is a staff reporter at Investment.com — your source for the latest in business developments at . investment Strategies Scott Fentiman Wednesday, February 9 7 to 10 p.m. $65 A Successful Retirement Doesnt Just Happen Cherith & Roger Cayford Saturday, February 19 9am.to4p.m. $95 _ Capilano Coliege Continuing Education, North Vancouver Gai Capiiano www.capcollege.be.ca/continuinged/courses College Our research analysts have identified 15 of the fastest growing public companies in Canada’s knowledge industry sectors: * Technology ° Media & Entertainment * intemet & E-Commerce « Lifestyle & Leisure * Telecom & Cable © Growth Industries ' ¢ Health Care Rick Holland | “Investment Advisor For information cail 640-0321 Rick Nolland rholland@yorktor.com AN easy way to pinpoint invest opportunities is to look around at the products a you have at home. Al! of these Hems are made by Canadian companies trading on the stock market. Paliip Xuzyx ; Contributing Writer SOME investors find the thought of investing in the stocks of individual companies somewhat intimidating. After all, how do you possibly decide which companies, out of literally thousands, to choose? ; A good place to start is by taking a closer look at the products and services you use in your own daily routine. Consider a typical day in the life of the average Canadian. At 6:30 a.m., the alarm clock rings, inter- rupting your peaceful slumber. You reluctant- ly roll out of bed and head for the bathroom, where you turn on the light. (Canadian Utilities), brush your teeth (Crest — Procter & Gamble), either shave (Gillette) or put on pantyhose (L’eggs — Sara Lee). For breakfast you make yourself a slice of toast with peanut butter (Peter Pan pcanut butter — ConAgra Inc.) Enjoying a second cup of Folgers coffee (Procter & Gamble), while reading the Globe and Mail (Thomson Corp.), you notice it’s time to go and make your way to the subway (Bombardier Inc.), At work, you turn on your computer (Hewlett Packard) then return a few phone calls (BCE Inc.) Before you know it, it’s time for lunch. You grab a hot bowl of soup (Campbell Soup). . On your way home from work that night,. the cellular phone (Motorola) rings. It’s your-.- spouse reminding you that because the car is. in the shop for repairs (Magna International... Inc.), you need to run a few errands'on your. way home. . Sas ; os You stop by the mall to pick up a phone © (Nortel) for your teenage daughter's birthday. and by the grocery store (Loblaw Companies: Ltd.) for a birthday cake. we At home that night, you start:a load’ of* Isundry (Clorox) while your’ spouse’ cooks dinner. Later that evening, while enjoying an ice-cold beer (Mclson Companies), you ani your spouse discuss what renovaticns (Home: Depot) you want to make to your living room ese are typical of the goods and services: the average Canadian uses every day. Many o these products’. are provided. by. companies whose stecks can be purchased publicly. OF course,’ your. loyalty. to /2 * particular, product doesn’t’ guarantee’: that “company success, but it. does provide a good i point in your search for an attractive ‘stock investment. wip Bae we By discussing the compaay with an in ment professional, you can. determine if: th stock provides an attractive investinent oppor- ity or ifanother company might better sy your investment needs. | 3° : Philip Kuzyk is an investment representativ ae Edward Jones.. He can. he: re At: 980- 7433, Oe Monthiy Income on $50,000 Investment RATES SUBJECT TO CHANGE WITHOUT NOTICE RS JGUARD investments fac: Securities Doater 1205-675 W. Hastings St: Vancouver 688-3577 401-100 Park Royal S. West Vanc 925-3101 2 wwenwselguard.con “Building better retirement incomes since 1974... <> RRSPs, RRIFs, LIFs) > GIC's/Term Deposits => Salf-Directed Pians.:- > Annuities: 0 > Life Insurance. = RESP Programs: = Mutual Funds/Seg » 25 years’ experience in. investment, retirement and “ ‘estate planning .: