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CIBC Securities Inc. — the basics of mutual fund investing

find out more about mutual funds and how to develop an investment plan that's right for you

first things first — what is a mutual fund?

A mutual fund is a pool of money managed and invested by investment experts. When you invest in a mutual fund (by buying “units” which represent an ownership interest in the fund), you’re really combining your money with other like-minded investors. Each mutual fund has a professional investment manager who researches, chooses and monitors investments for the fund. Each fund also has an investment objective, which determines the type of investments the fund owns.

CIBC Securities Inc. is one of Canada's largest mutual fund companies, offering a full range of savings, income and growth funds, as well as one of Canada's largest family of index funds.

why should I invest in mutual funds?

There are several advantages to investing in mutual funds, including professional investment management, diversification and the potential for long-term growth.

Mutual funds allow you to benefit from the skills of professional investment managers with only a modest investment generally required. Plus, when you invest in a mutual fund, you're actually buying an interest in the many different investments the fund holds — diversification that reduces your overall investment risk, as declines in one investment may be offset by strengths in others. Including a mix of mutual funds in your portfolio can further diversify your portfolio and may help you reach your investment objectives.

are there risks involved when investing in a mutual fund?

Some mutual funds have very low risk. Others have relatively high risk, but even then, they are generally less risky than individual shares of a company. As mutual funds own different types of investments, the value of these investments will change from day to day. As a result, the value of a mutual fund's units may go up and down, and the value of your investment in a mutual fund may be more, or less, when you redeem it than when you purchased it.

what kinds of mutual funds are available?

There are three main asset classes of mutual funds — savings, income and growth. Depending on your investment objectives and profile, you may want to invest in just one type or decide to spread your money through all three. This is called asset allocation.

saving funds

hold mostly money market investments
designed to produce a steady level of income with a high priority on protecting the value of your initial investment
provide an excellent place to park money you might want quick access to
low risk investment

View CIBC index savings fund

income funds

focus on fixed-income securities
have the potential to generate a higher level of income than savings funds, with some capital growth over the long term
low to medium risk investment

View CIBC index income funds

growth funds

often called equity funds
invest primarily in the stocks of different companies
objective is to generate capital growth
higher risk investment

View CIBC index growth funds

which mutual funds are right for me?

With thousands of funds on the market, it can be a challenge to determine how to build a portfolio that properly reflects your investment goals. Start by using an easy-to-use investment planning tool to help decide which investment mix is best for you —it will recommend one of our seven index fund portfolios.

what else should I know about investing in mutual funds?

Here are 6 steps to keep in mind when investing in mutual funds:

know yourself. Every investor has a different comfort level with investment risk and a different time horizon for achieving their investment goals. Find the risk-reward balance that's right for you and appropriate for your investment time frame.
begin investing now. Time can be an investor's greatest ally, especially for long-term savings goals. Learn how starting earlier can help you achieve your investment goals.
build a diversified portfolio. Spreading your assets across a wide range of different investments is the best way to reduce risk and increase potential returns over the long term.
invest regularly. "Pay yourself first" by investing a set amount at a regular interval. Setting up a regular contribution program means your money is invested immediately, before you can think about spending it.
monitor your portfolio. Life and your portfolio will both change over time. So it is important you monitor your portfolio regularly to ensure it still reflects an investment strategy that is right for you.
invest for the long term. Set a long term strategy and stick with it. You'll minimize your risk of buying or selling at the wrong time, be less affected by short-term price changes and benefit from compound growth.

Learn more about the 6 steps of successful investing.

helpful tools and information

CIBC Mutual Fund Fees
CIBC Fund Facts
CIBC Mutual Funds and CIBC Family of Managed Portfolios Simplified Prospectus
- Simplified Prospectus - July 28, 2011
- Amendment No. 1 to the Simplified Prospectus – December 21, 2011
CIBC Mutual Funds and CIBC Family of Managed Portfolios Annual Information Form (AIF)
- Annual Information Form - July 28, 2011
- Amendment No. 1 to the Annual Information Form – December 21, 2011
CIBC Mutual Funds and CIBC Family of Managed Portfolios Financial Statements
- Annual 2010
- Interim 2011 (unaudited)
Management Report of Fund Performance
- Annual 2010
- Interim 2011
Quarterly Portfolio Disclosures
- Quarterly Portfolio Disclosures

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important information about CIBC Securities Inc. and CIBC Mutual Funds