Mutual Funds

Are mutual funds right for me?

Mutual funds can be an effective way to diversify your investments and help you reach your long-term financial goals – whether that’s your retirement or saving for your child’s education. The mutual funds concept is simple: a group of investors pools money together and a fund manager invests this money in return for a management fee. Every mutual fund unit represents an investment in a variety of securities that could include stocks, bonds, cash, and other securities. There are a number of benefits to choosing mutual funds:

How much risk is involved in mutual fund investing?

A mutual fund is made up of a variety of investments, which means every mutual fund carries a different level of risk. Decades of market experience tells us that the higher the risk level, the greater your potential for earning a good return. That said, it’s important to remember that your principal is not guaranteed when you invest in mutual funds, since your investment is subject to market returns. 

Socially Responsible Mutual Funds

We want to help you connect your values with your finances. One way we do that is by offering socially responsible mutual funds. Socially responsible investments (SRI) use wealth to build a more economically, socially, and environmentally sustainable world. SRI is known by many names such as green, ethical, or responsible investing, it engages with environmental, social, and governance (ESG) analysis, and can include impact investing. Our Wealth and Investment Team partners with QAM and QA to offer socially responsible mutual funds from NEI Investments and IA Clarington Investments, both of which apply screening processes to their SRI offerings. We also offer SRI mutual funds with an ESG focus from leading companies including CI Investments, AGF, Franklin Templeton, Mackenzie, and Fidelity Investments.

What makes an investment socially responsible? An investment can be considered socially responsible based on the nature of the business the company conducts. Screening is a filtering process based on social and environmental criteria that are used to identify if an investment can be deemed socially responsible. Negative screens strive to limit investing in companies that engage in practices such as gambling, military weapons, nuclear power, and pornography. Positive screens evaluate companies based on the good they do and strive to include those that engage in practices that support, for example, animal welfare, human rights, and the environment. Shareholder advocacy is another aspect of SRI, which allows investors to have a say in the companies they invest in.

​NEI Investments, a leading provider of mutual funds and investment portfolios, offers Canada’s largest and most diversified range of SRI solutions.

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