1. How Do I Purchase Mutual Funds? Investment and Finance 12 Ms. Stewart

2. Where do I buy mutual funds? You can buy mutual funds only from advisers who are licensed to sell them. When someone is registered, it means they have taken the training and passed the exams their province requires to sell mutual funds. Also, they must work for companies that are licensed to sell funds. You can buy mutual funds only from advisers who are licensed to sell them. When someone is registered, it means they have taken the training and passed the exams their province requires to sell mutual funds. Also, they must work for companies that are licensed to sell funds.licensed

3. Where can I buy mutual funds? Banks and trust companies Banks and trust companies Life Insurance companies Life Insurance companies Credit Unions Credit Unions Mutual Fund dealers Mutual Fund dealers Brokerage firms Brokerage firms Mutual fund companies that sell directly to the public Mutual fund companies that sell directly to the public

4. How do I choose mutual funds that are right for me? 1) Buy only from registered advisors. 2) Ask about fees: There are fees involved with all mutual funds. Some have more fees than others. 3) Make sure your investments fit your financial plan: You can lose money on mutual funds just as you can with any other investment. your goals, how much risk you want to take, and the length of time you plan to invest.

5. How do I choose mutual funds that are right for me? 4) Research the risks: Make sure you know the risks when you buy a fund. Don’t assume that a fund that did well in the past, will do well in the future. Some mutual funds are much riskier than others. 5) Avoid hot tips: Any fund that may grow a lot in value, can also drop a lot in value. The risks could be quite high. Be very careful about picking a fund that someone says will make you a lot of money quickly.

6. How do I choose mutual funds that are right for me? 6) Look past the advertising: You may see ads for a mutual fund company, and get to know their name really well. When you want to buy a mutual fund, you may decide to buy their funds without thinking much about it, just because you know the name. However, some of their funds can be doing quite poorly, while others are doing very well.

7. Steps to Buying a Mutual Fund Before you buy any mutual funds you must set up an investment account. You can do this at most financial institutions (bank) or investment company. Before you buy any mutual funds you must set up an investment account. You can do this at most financial institutions (bank) or investment company. *Note* In most provinces you must be 18 to do this, those 18 and under can have their parents set up an account “in trust” until the age of 18 is reached and it can then be transferred. *Note* In most provinces you must be 18 to do this, those 18 and under can have their parents set up an account “in trust” until the age of 18 is reached and it can then be transferred.

8. Steps to Buying a Mutual Fund Research the following questions: Research the following questions: How well is this fund doing in comparison with other similar funds? How well is this fund doing in comparison with other similar funds? What looks good about the future of this fund? What looks good about the future of this fund? What is the current unit price? What is the current unit price? What do experts think about owning this mutual fund? What do experts think about owning this mutual fund?

9. Steps to Buying a Mutual Fund How much risk is there with losing some of my money? How much risk is there with losing some of my money? What fees will I pay? What fees will I pay? How will my advisor be paid for selling me this fund? How will my advisor be paid for selling me this fund?

10. Purchasing and Cancelling When you purchase a mutual fund you buy units of the fund. Each fund requires that you buy a minimum amount (for example, $500). The number varies from fund to fund. When you purchase a mutual fund you buy units of the fund. Each fund requires that you buy a minimum amount (for example, $500). The number varies from fund to fund. You can cancel your order to buy a mutual fund within 48 hours after you receive confirmation of your order. Rules vary in some provinces. You can cancel your order to buy a mutual fund within 48 hours after you receive confirmation of your order. Rules vary in some provinces.

11. How do I sell my Mutual Funds? The value of a mutual fund unit is described as the net asset value per share (NAVPS). Here is how you calculate the NAVPS: The value of a mutual fund unit is described as the net asset value per share (NAVPS). Here is how you calculate the NAVPS: First, take the total value of the fund if everything were sold on that day. First, take the total value of the fund if everything were sold on that day. Divide that total value by the total number of units that the fund has sold to investors. Example: If a fund is worth $10 million and has sold one million units, the NAVPS will be $10. If you own 10 units, your investment is worth $100. Divide that total value by the total number of units that the fund has sold to investors. Example: If a fund is worth $10 million and has sold one million units, the NAVPS will be $10. If you own 10 units, your investment is worth $100.

12. Costs Associated with Selling Your Fund If you bought a mutual fund with a deferred sales charge, you will pay some fees upon selling your mutual fund. If you bought a mutual fund with a deferred sales charge, you will pay some fees upon selling your mutual fund. A deferred sales charge (or a “back-end load”) is a sales fee that you will pay when you sell your investment. The fee often goes to zero after keeping the investment for a few years. A deferred sales charge (or a “back-end load”) is a sales fee that you will pay when you sell your investment. The fee often goes to zero after keeping the investment for a few years. The size of the fee depends in part on how long you have held the funds, and what company you are dealing with. Most companies allow you to sell a certain number of units (say, 10%) for free each year. The size of the fee depends in part on how long you have held the funds, and what company you are dealing with. Most companies allow you to sell a certain number of units (say, 10%) for free each year.