If you are having a hard time choosing one of the more popular Canadian mutual funds, then you are not alone. Many Canadians struggle to select the most suitable fund from a list of the top Canadian mutual funds.
To help you out, we would like to offer up some powerful information that might make you rethink investing in mutual funds altogether.
We understand why people are attracted to mutual funds in the first place. It offers individuals a simple and painless way to gain access to various investment opportunities. Just visit your bank or financial advisor and in almost no time you are invested in the market. Of course, you would not just blindly hand over your financial future to a fund company without doing some research. You probably have analyzed Canadian mutual fund performance from different angles. Maybe you look at overall returns vs fees or maybe take the advice of a relative or friend already invested in a fund.
Researching your investment options is a great idea. However, there is one lurking problem that mutual funds will not likely tell you about. What happens when the market corrects? The unfortunate problem with all mutual funds is the strategy used. It is based on the common buy-and-hold strategy. Why would multi-billion dollar funds, with dedicated investment research teams, follow a strategy that in recent times has imploded? Confirmation bias.
Simply put, funds not just in Canada but across the globe use a similar strategy of buy and hold because it has worked quite well for the last 50+ years…until now. Essentially, fund companies have recognized that simply holding onto stocks for the long haul has resulted in positive returns. But, the real issue is that the buy-and-hold strategy does not take into consideration that markets can and do change.
When the market crashed in 2008, because mutual funds did not have any contingency plans to limit losses, investors were essentially left with half of what they started with prior to 2008. Sure, some funds have recovered with the market, but while you have been patiently having to wait things out, you have also missed out on some great market opportunities.
Some people just cannot be bothered (or do not have the time) to personally manage any aspect of their investment portfolio. They would rather buy index mutual funds or let someone else look after their investment success (or lack thereof). But, if you are someone who has grown frustrated with the performance of your mutual funds and bonds and have a burning desire to achieve financial freedom, we have created a simple to use and very powerful system to empower you to invest with confidence. It’s called Elevate and you can discover how it may help elevate your financial future here.
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