Business MUTUAL FUND INVESTMENTS Turn little dollars into bigger bucks HOW CAN you take a little money, spread it around over a wide range of investments, and have your investment decisions made for you by professional money managers? The answer is the mutual fund, something that has become very popular in recent years, what with autual fund managers quoting rates of return that often surpass 20 per cent. money matters by Lisa Smedman fn wn) A mutual fund is simply a vehi- cle through which a great number of people can pool their money to make investments. On your own, a few hundred dollars might only be enough to buy shares in one com- pany, one type of bond, or one term deposit. But putting your money into a pool with millions (or billions) of dollars can see it spread over dozens of different in- vestments. When you buy into a mutual fund, you are buying a share of the total fund. Each share has a doilar value, which rises as the invest- ments held by the fund iurn a profit. Mutual funds come in a variety of forms, depending upon what the pool of money is invested in. There is everything from the more conservative ‘‘bond fund’’ to the “equity funds’? which invest in stocks, to the more risky ‘‘options fund’’ which invests in the volatile options market. There are also ‘*balanced funds,’’ which combine investments of varying risks and rates of return. When comparing the rate of return offered by a mutual fund to that of other potential investments, remember that the percentage quoted is a gross rate. To deter- mine the true rate of return your dollar will produce in a mutual fund, you need to ask first whether the fund is a ‘‘load”’ or ‘‘no-load’’ fund. With a no-load fund, you will not be charged a fee for buying in- to the mutual fund. With a load fund, you will be charged a fee that is a percentage of your total purchase. This fee can range naest eine U gy Jennifer Sinclair Paige Bentley anywhere from two to nine per cent, and is usually only charged when you are buying (not selling) mutual fund shares. (Don't expect to get a two per cent load unless your purchase totals more than about $100,000, and if you plan to be buying more shares of that mutual fund.) You must also deduct from the gross rate of return quoted the percentage paid by the fund to its manager. You can expect to pay at least a tenth of one per cent to the fund manager, who, after all, isn’t managing your money for nothing. Any mutual fund is only as good a its manager. This is the person who chooses what to buy, and (even more important) when to buy (or sell) it. When buying a See Track Its here 27 - Sunday, September 7, 1986 - North Shore News BRITISH COLUMBIA INSTITUTE OF TECHNOLOGY DEPARTMENT OF INDUSTRIAL EDUCATION ARE YOU LOOKING FOR A CAREER CHANGE? Training spaces are available in the joint UBC/8CIT industrial Educa- tion Teacher Education Program, leading to employment in B.C secondary schools as Industrial Education teachers. You may be eligible for admission if you have proven success in occupa- tions such as: ® Automotive and Heavy Duty Mechanics © Electrical/Electronics ® Machine Shop © Drafting © Related mechanical and technical fields. For immediate information, call or visit the Department of industrial Education, 3750 Witlingdon Avenue, Burnaby, B.C. V5G 3G9. Telephone: 660-5465 or 432-8263 one call does it all 25 WORDS $109 North Shore News 986-6222 now on the North Shore! Our new location is nearing completion and our first shipment of new 1986/87 MAZD4’. Rave already arrived. We'd like to invite you to drop in today and have a look at and test drive This week we are very pleased to feaiure two delightful pret- ty young girls, as our double stars. Jennifer Sinclair and Paige Bentley deliver 100 of our Friday News in the Pemberton Heights area and do an excellent job for us. They share the duties of their route and the pay, equally and it works just fine for them. Both girls are grade 6 students at Capilano Scheol and both enjoy P.E. Jennifer is involved in track, enjoys skiing, is a Giri Guide, plays tne Clarinet in the school band and sings in the choir. Her ambi- tion is to become a teacher. Paige is a member of the Flicka Gyrn Club, enjoys travelling to great places like Disneyland, San Francisce and Calgary and she would like to become a lawyer. Jennifer and Paige both have their own bank accounts and as much as possible is saved from their earnings. For being our double stars, the gir's received, complimentary movie passes, North Shore News baseball caps and a special thanks for a job very well done. the new MAZDA'S we're located at 730 Marine Drive, North Vancouver, (formerly Ron Zalko Fitness), and we're open Monday to Friday, 9am-9pm; Saturday, 9am-6pm. cs oi ae nf % M = fre, EAE, SUP, ; ary Trey ee ke 4 s aes at sy % 5 bee = Freee Joan Cripps SS Circulation Dept. 1139 Lonsdale Ave., N.V. 986-1337 North Vancouver SUNDAY » WEDNESDAY © SHTIDAY