(NC) Think for a moment about buying a mobile phone. If you’re like most of us, you don’t end up with just the physical phone − you have a plan that likely includes data, voicemail, emergency service and some local or long distance minutes each month.
In the same way, when you buy a mutual fund, several services are included in your purchase, such as trading and access to capital markets, trading support, expert advice and coaching, and investor protection.
Trading and access to capital markets includes arranging purchases and withdrawals of securities on behalf of investors and assisting you with these arrangements.
Trading support includes opening your account, processing your transactions, providing your account statements, trade confirmations and other reports, as well as the time, systems and other administrative services to support these activities.
You also benefit from the expert advice and coaching that your advisor offers. This includes helping you figure out your financial goals, understand your comfort with risk and identify specific mutual funds that suit your profile. You should meet at least once per year with your advisor to ensure that you’re on track to meet your investment goals.
Canada has an excellent investor protection framework. Your dealer (that is, the firm with whom your financial advisor is registered) supervises your account to ensure that your purchases meet the regulators’ high standards.
To learn more, visit IFIC.CA > Investor Centre.