Valley First

Mutual Funds

This investment is for you if:

  • you want to get a range of investments without the worry of managing
    each one separately.
  • you want to choose from a variety of options that suit your goals and
    risk tolerance.
  • you like investment plans that are simple.

Overview

Key Features & Benefits

The key idea with mutual funds is that you can choose from a variety of investment options with varying degrees of risk and potential return. Best of all, you can have someone else manage them for you!

We offer a full range of investment solutions from Oceanrock Investments Inc., managed by Qtrade, including the Meritas SRI Funds . Meritas is a leading Canadian provider of Socially Responsible Investing (SRI) and the only fund manager to incorporate micro-finance, a vital aspect of SRI, into its funds.

  • Funds can be registered (i.e. RSP/RIF) or non-registered
  • You can redeem funds should you need them
  • Minimum account size $5,000
  • You can own many different types of underlying investments within each fund to reduce your overall risk
  • Investments available to suit any risk tolerance
  • Small investors can gain the potential of high returns through access to higher-yielding securities such as stocks and bonds
  • Funds are professionally managed
  • Dividend and capital gain income is taxed at a lower rate than earned interest

*Securities and securities related financial planning are offered through Qtrade Advisor, a division of Qtrade Securities Inc., Member of the Canadian Investor Protection Fund. Mutual funds and securities related financial planning are also offered through Qtrade Asset Management Inc., Member MFDA. Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Unless otherwise stated, mutual fund securities and cash balances are not insured nor guaranteed, their values change frequently and past performance may not be repeated. OceanRock Investments Inc. is the trustee, manager, portfolio adviser and promoter of the Meritas SRI Funds and the OceanRock Mutual Funds.

FAQ

Frequently Asked Questions

What is a mutual fund?

A mutual fund is an investment that pools money from many individuals and invests it according to stated objectives. Professional money managers make investment decisions on behalf of fund investors, buying and selling investments such as money market investments, bonds, and stocks. When you purchase units of a mutual fund, you become a part owner of all the investments held by that fund.

Why do people buy mutual funds?

For the average investor, mutual funds are a convenient and affordable way of gaining access to investments that would otherwise be available only to large institutions or the wealthy. These investments are selected by experienced professionals who devote themselves exclusively to tracking the markets, analyzing investments, and implementing a consistent investment strategy.

What types of funds are available?

There are a variety of mutual fund categories, including Managed Portfolio (or Fund-of-Funds) Solutions. Each offers a range of funds suitable for every type of investor, from the most conservative to the most aggressive.

  • Money market funds provide a reasonably secure and flexible way to invest for primarily short-term goals. They earn interest income. Since many investors pool their money in a money market fund, the fund manager is generally able to purchase investments with somewhat higher yields than would be possible for an individual investor.
  • Fixed income funds provide investors with regular income and the potential for modest long-term growth through exposure to bonds and other fixed interest securities.
  • Balanced mutual funds hold a mix of stocks, bonds, and money market investments. Different economic factors affect investment markets in different ways. The key goal of this type of fund is to offer an investor an appropriate level of diversification given market conditions. These funds offer the potential for income, dividends, and long-term growth.
  • Canadian equity funds offer a convenient and effective way to invest in a diversified portfolio of Canadian securities.

Global equity funds give you the opportunity to diversify your portfolio around the world to capitalize on the growth potential in other countries.

What is dollar cost averaging?

If you find saving money next to impossible, you are not alone. Many Canadians find that the biggest obstacle to meeting their goals is putting money aside after their living expenses. Dollar cost averaging is an excellent way to save and to minimize volatility risk and maximize returns. By purchasing the same dollar amount on a regular basis, you buy more units when prices are low and fewer units when prices are high. The result is a lower average cost per unit over time.

What kind of risk is involved with mutual funds?

In investing, the element of risk can vary substantially. A general rule is that the higher the potential return, the higher the risk. A fund that aims to achieve a high level of growth will be more volatile than one whose objective is to preserve the original capital. On the other hand, a growth fund will likely earn a higher return over the long term than a money market fund.

Are mutual funds insured?

Since mutual funds qualify as securities and not deposits, they are neither guaranteed nor insured. However, fund managers and the funds themselves operate under strict securities regulations. Canadian securities regulations require that the assets of a mutual fund (its investment) must be held in trust by a Canadian financial institution, which serves as trustee. This means that the fund manager does not actually own or have access to the mutual fund assets. As well, all fund assets must be kept separate from the trustee's other assets at all times, which means that the mutual fund is not affected by the trustee's financial situation. These regulations are strictly enforced and regularly audited, helping to protect your investment.

However, this does not mean that the value of your mutual fund investment will not fluctuate. Investment markets go up and down. The variability of your portfolio will depend on the type of mutual funds that you hold, movements in the investment markets, and the expertise of the portfolio manager.

What about taxes?

Mutual fund units held in RSPs are exempt from tax until withdrawn. Outside an RSP, all investment income is subject to income tax at your marginal rate. Not all investment income is taxed equally. By choosing your investment carefully, you might pay less tax. Income received from your mutual fund investments can be in the form of interest, dividends, capital gains, or a combination of the three. Capital gains earned by your mutual funds are reported to you on your T3 slip.

How do I get started?

To invest in mutual funds or to review your investment needs and goals, call or visit your nearest Valley First branch and speak to a Qtrade Advisor Investment Advisor or one of our Qtrade Asset Management Mutual Funds Representatives.

Consider investing online with our partner, Qtrade Investor—Canada’s best online broker. Contact us for more information or login to your Qtrade Investor account now.

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