What is a Mutual Fund? 

• When you invest in a mutual fund:
  • You are pooling your money with people who have similar investment goals
  • An expert portfolio manager invests that money on behalf of the group
  • If the investments make money, everyone shares in it; if the investments lose money, the whole group shares the loss

The more you invest, the more units you own and the bigger your share of the fund's income, gains and losses. As a unitholder, you also pay a share of the fund's expenses.

• Mutual funds come in many varieties designed to meet investors’ differing needs – a fund could hold investments like equities, bonds, cash, derivatives or some combination of these, depending on its investment objective.

The value of these investments can go up or down, affected by things like:

• Changes in interest rates or exchange rates
• Economic conditions in Canada or abroad
• News about the companies the fund invests in

When the value of the investments changes, it can make the price of the mutual fund units rise or fall. That's why mutual fund investments can increase or decrease in value after you buy them.

• Professional investment management at an affordable price – Experienced professionals research individual investments and make decisions on behalf of you and the other fund unitholders.

• Spreading risk through diversification is the key to investment success. When you buy a mutual fund unit, you're buying part of many different investments with just a single purchase.

Choosing from the selection of BMO Mutual Funds provides opportunity to meet virtually every investment objective. If your needs change, you can switch to another BMO Mutual Fund at no charge.