Jin S. Xue Insurance & Investment

Servicing Canadians Since 1991

Mutual Funds

Mutual funds are a great option to help reduce your risk by spreading your money more widely than investing on your own.

A mutual fund pools your money with many other investors in a group of investments, like stocks and bonds. A professional money manager chooses the investments for each fund with a specific objective and investment type in mind. For example, a Canadian equity fund invests primarily in Canadian stocks.

Mutual funds can help you spread your money more widely than investing in individual stocks and bonds on your own.

Broad options

Mutual funds invest in many different companies, industries, countries and investment types, which can help reduce risk.

Cost effective

Your money is pooled with other investors making it much more affordable than buying stocks by yourself.

Expert management

You can be confident your money is being managed by a team of professionals who have training and experience.

How can you grow your money with mutual funds?

Dividend payments

You earn income from dividends on stocks and interest on bonds held in the mutual fund. You may have the choice to either receive a cheque or reinvest the earnings and get more shares.

Capital gain

When a mutual fund sells an investment that’s increased in price, this is a capital gain. Most funds deliver capital gains or losses to investors annually.

Net asset value (NAV)

If investments in a mutual fund rise in value but aren’t sold by the fund manager, the mutual fund shares increase in price. Providing the fund doesn’t decrease in value, your investment will grow in value when you decide to sell the mutual fund.

Advantages of mutual funds

Team of experts

Mutual funds are managed by professional portfolio managers who buy the securities in the fund. They ensure the securities are in line with the fund’s investment objective—and yours.

Putting your eggs in several baskets

By investing in one fund, you get access to a number of different opportunities, without the hassle or risk that comes with purchasing and monitoring individual investments on your own.

Achieve different investment goals

You can invest in mutual funds as part of a registered retirement savings plan (RRSP) to save for your life after work, a registered education savings plan (RESP) to help fund a child’s education, or a tax-free savings account (TFSA) to save for almost anything.

Money when you need it

Mutual fund units can be “cashed out” any time but remember the amount of money available will depend on the mutual fund's unit value on that day and any redemption fees.

What kind of fund do you need?

Because mutual funds and segregated fund policies are in some ways similar and other ways different, here’s a chart to help you determine which choice will help you reach your investment goals.

Mutual funds
Segregated fund policies

Type of investment

A pool of money spread across different investments, managed by experts.

A pool of money spread across different investments, managed by experts.



Insurance guarantees can protect much or even all your original investment at death and policies maturity date.


Less than segregated fund policies and investing in individual stocks

More than mutual funds due to paying a premium for the insurance guarantee

Variety of investment options



Estate planning

Registered mutual fund proceeds are passed on to your named beneficiaries when you die. No probate tax.

When you die, proceeds go directly to your named beneficiaries and won’t flow through your estate. No probate tax.

Potential creditor protection

For registered mutual funds, bankruptcy protection may apply.