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  • Home > investing/advice > Investment Types > Mutual Funds

    Investment Types

    contact usThere is almost an endless choice of investment products you can put in a portfolio. Some of these ideas have been around for years, some are brand new and there are more variations on every theme emerging every day.

    If you have time to track it all, make sense of it all and follow it all, we wish you the best. For the rest of us, Libro has an excellent selection of proven investments that can be tailored to your lifestyle and financial plan.

    It's always your choice - we're here to guide those choices and provide the information you need to grow.

    Mutual Funds

    What are they?

    Mutual Funds are a collection of stocks and bonds that are funded by shareholders (unit holders), professionally managed and diversified to spread risk. Libro owners have access through Credential Asset Management Inc. to a wide range of funds. These include Canada's top fund families like CI Investments, Fidelity, Franklin Templeton, and NEI Investments, home of the award-winning socially responsible Ethical Funds®.

    Money market funds hold very low risk investments such as treasury bills and short-term bonds. Fixed income funds include mortgage-backed securities, corporate and government bonds and GICs. Balanced funds consist of bonds and stocks. Equity funds invest in stocks of various companies.

    Who should buy them?

    Mutual Funds give average investors an opportunity to invest in a diversified portfolio of securities in a professionally managed context. We believe that makes mutual funds a good choice for most owners depending on individual risk tolerances and timelines.

    What are the next steps?

    Look into some of the fund families listed above to get a feel for the topic. Then set up an appointment a Libro Coach to assess your needs and the right fit.

     

    *Mutual funds are offered through Credential Asset Management Inc. 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 covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer that insures deposits in credit unions. There can be no assurances that the fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment will be returned to you. Mutual Funds are not guaranteed, their values change frequently, and past performance may not be repeated.

    ®Credential is a registered mark owned by Credential Financial Inc. and is used under license.

    ®Ethical Funds is a registered mark owned by Northwest & Ethical Funds Investments L.P. and is used under license.

    Ethical Funds® are sold in all provinces and territories across Canada.

    Term Deposits / GICs

    What are they?

    Guaranteed Investment Certificates pay a fixed rate of interest for a specified term between 1 and 5 years. Term Deposits pay fixed interest for a specified term between 30 and 365 days. There are no withdrawal privileges unless otherwise stated. The principal is guaranteed in both cases.

    Who should buy them?

    Investors with a very low tolerance for risk, those seeking income in retirement or people who want to put their savings out of reach for a specific period of time. Most investment portfolios will have a foundation of fixed-term products.

    What are the next steps?

    Consider GICs for your Tax-Free Savings Account or for other specific savings needs. If you have GICs in your RRSP portfolio, ask your Coach about 5-year ladders to minimize your interest rate risk over time.

    Rates

    Index-Linked GICs

    What is it?

    Index-Linked GICs can provide the best of both worlds for investors. They are a savings certificate with a rate of return based solely on the performance of the S&P/TSX 60 Index, with either a 3 or 5 year term, and no withdrawal privileges prior to maturity.

    The S&P/TSX 60 Index tracks 60 foremost companies in leading industries in Canada, providing investors with a broad, but manageable index. Candidates for the S&P/TSX 60 Index are evaluated for ample liquidity and efficient share pricing, as well as representation of important industry segments within Canada.

    • 3 or 5 year terms available
    • No fees or commissions
    • Eligible for RRSP/TFSA/Non-registered plans
    • Principal guaranteed at maturity
    • Receive gains made on the index
    • DICO insured

    S&P/TSX 60 Sector Breakdown

    Who should use it?

    Investing in Index-Linked GIC is a great solution if you are looking for an option with the principal guaranteed and the potential for a higher return than that of a fixed rate investment. The rate of return is tied to the growth in the stock market. You can take advantage of gains in the market and your principal will be fully protected if market values drop.

    What are the next steps?

    Set up an appointment with your Libro Coach to assess your needs to see if a Index-Linked GIC is right for you.

    Contact your Libro Coach

     

    The Fine Print

    *Standard & Poor's®" and "S&P®" are trademarks of The Standard & Poor's Financial Services LLC and have been licensed for use by Libro Credit Union. "TSX" is a trademark of the TMX Group Limited and has been licensed for use by Libro Credit Union.  The Index-Linked GICs are not sponsored, endorsed, sold or promoted by Standard & Poor's or the Toronto Stock Exchange and neither party makes any representation regarding the advisability of investing in these deposits. 01/2014.

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    Credential Direct

    Credential Direct® is a division of Credential Securities Inc. and operates as a separate business unit. Credential Securities is a member of the Canadian Investor Protection Fund. Credential Direct® is a registered mark owned by Credential Financial Inc. and is used under license.