Mutual fund company
A mutual fund company is a privately or publicly owned business that manages, sells and markets closed-end and open-end mutual funds to the public.[1] They typically offer a variety of funds and investment services to mutual fund investors that include portfolio management, record keeping, custodial trust, legal, accounting and tax management services.[2]
Statistics
At the end of 2020, Canadian mutual funds held $1.78 trillion dollars in assets, spread over more than 3000 funds.[3] Of these assets, about half were in balanced funds.[3]
Back in 2015, mutual funds were held by 33% of Canadian households and accounted for 31% of Canadians' financial wealth.[4]
How to buy mutual funds
Mutual funds can be purchased:
- In a mutual fund account offered by the fund company or bank
- In a discount brokerage account
- Through financial advisors
Investor protection
The Canadian Investor Protection Fund (CIPF) exists to ensure that, in the event of an investment dealer or mutual fund dealer insolvency, cash and securities are returned to the investor, within defined limits.
References
- ^ Investopedia, Fund Company, viewed March 13, 2018.
- ^ Investopedia, What Is an Investment Company?, viewed May 4, 2021 (warning, US content)
- ^ a b Investment Funds Institute of Canada, 2020 Investment funds report, viewed January 30, 2021.
- ^ Investment Funds Institute of Canada, Stats and facts, viewed January 30, 2021.
External links
- Canadian Mutual Fund Companies, The Fund Library
- The Investment Funds Institute of Canada: Glossary
- Mutual Fund Dealers Association of Canada: the self-regulatory organization for mutual fund dealers in Canada
- MoneySense, The best mutual fund companies you’ve never heard of, January 2020