Mutual Fund companies assess additional fees – for example, deferred sales charges on back-end load funds, early redemption fees, setup fees and charges for insufficient funds on pre-authorized purchases. Management fees and operating expenses are paid by the mutual fund. There may be trailing commissions associated with these mutual fund investments.
There may be commissions, trailing commissions, management fees and expenses associated with mutual fund investments. Please read the prospectus or Fund Facts before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. For money market funds 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 in the fund will be returned to you.
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Distribution of a portion of a company's earnings, decided by the board of directors, to a class of its shareholders. Dividends are often quoted in terms of the dollar amount each share receives (dividends per share or DPS).
A method used to reduce risk by buying securities covering a variety of issuers, asset types, sectors, industries and geographies.
Capital Gains or Capital Loss
Profit or loss from the sale of real estate, stocks, mutual funds, and other holdings classified as capital assets under the federal income tax legislation. The tax treatment of capital gains is different from other types of investment income such as dividends and interest income.
A group of stocks representing companies in similar lines of business.
An index is a composite of securities which gives investors points of reference for evaluating the performance of their investments. It is important to compare the performance of an investment to an index that comprises similar securities. Examples include the S&P/TSX Composite Index and the Montreal Exchange Market Portfolio Index.
A Life Income Fund (LIF) is a locked-in savings account where an employer may transfer pension plan funds after you leave the plan.
It’s an income fund that’s similar to a LIF, with the same minimum withdrawal requirements, but a different calculation for maximum payments.
An income fund available in Manitoba and Saskatchewan that’s similar to a RRIF but with no maximum withdrawal requirements (unlike a LIF or LRIF).
A Restricted Life Income Fund (RLIF) is available to terminated registered pension plan members whose entitlements are governed by the federal Pension Benefits Standards Act, 1985. Like a LIF, an RLIF has withdrawal requirements except that the maximum income is calculated differently, and 50% of its value can be unlocked and transferred to an RRSP or a RRIF within 60 days of its establishment if the terminated member is at least 55 years old when the RLIF is established.