Index Funds

Low Risk Index Funds For RRSPs, Non RRSP, TFSA &LIRA Investment Accounts

 

An Index Fund Vs A Mutual Fund

•  A proven index fund investment model out performs 80% of the mutual funds on the market
•  Mirror the overall markets with a very low fee structure with an index fund
•  Less than 20% of mutual funds are able to do better than the market and very few are able to once fees are accounted for
•  Mutual funds have high management fees which are paid from your funds, they often contain duplications of fees
•  Mutual fund fees range as high as 4.5% with the average being 2.87%
•  Index fund fees are 0.95% leaving much more of your profits in your fund

Diversification

• An index fund is more diversified and therefore offers less risk than mutual funds
• Set up in four areas being the Canadian, American, International and Bond Index fund, an index fund portfolio covers all areas of the market
• Mutual funds are more focused requiring many funds to diversify a portfolio

Reliability

• Better equipped to handle ups and downs of the markets especially when funds are required
• The index fund is designed with a buy low sell high strategy that takes advantage of market lows and profits from market highs
• Mutual funds just go up and down with the market

Flexibility

• Equipped to give you the flexibility mutual funds don’t have for down markets during your retirement
• Mutual funds have no built in protection against market down turns at retirement, withdrawing needed funds from a mutual fund during market down turns can cost you many extra units and reduce the over-all value and life span of your mutual fund leaving you not enough funds for your full retirement
• When properly proportioned an index fund gives you a percentage of your funds less effected by the market down turns to withdraw from if needed

Cost

• Mutual funds have grown too large and are no longer the best way to invest for your retirement
• Mutual funds have lost its high growth potential due to its overall size
• Market watchers are now able to see and pre-empt mutual fund manager buys which cut further into the profits of a mutual fund
• An index fund is more adept to today’s investor needs

Why an Index fund?

• You will need an index fund to help you save for your future.
• Imagine having substantial amounts of savings for which you did not have to break a sweat.
• Little supervision is needed for an index fund and it is able to achieve higher results than mutual funds. That’s why the fees are low and the savings will be passed on to you.
• An index fund is the “new phenomenon”, so what are you waiting for? Start investing and reaping the benefits starting today!
• You can take lower risks with higher returns with an index fund.
• Your investments will also be placed into a diversified portfolio which guarantees your protection from market tribulations.

Don’t be afraid to take your first step into securing your financial health by contacting us about an index fund.