The Canadian Securities Administrators (CSA) have put together this guide to help you learn more.
A mutual fund is a type of investment fund. An investment fund is a collection of investments, such as stocks, bonds or other funds. Unlike most other types of investment funds, mutual funds are “open-ended,” which means as more people invest, the fund issues new units or shares.
Also, mutual funds are widely available through banks, financial planning firms, brokerage firms, credit unions, trust companies and other investment firms. You can buy or sell funds at any time.
Other things to consider
Like all investments, mutual funds have risk you could lose money on your investment. The value of most mutual funds will change as the value of their investments goes up and down.
Depending on the fund, the value could change frequently and by a lot.
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