These popular mutual funds can provide you with a balance of income and long-term growth potential by investing in a blend of fixed income and equity securities.
Balanced funds invest in a diversified mix of bonds (also known as fixed income) and stocks (also known as equities) in the convenience of a single mutual fund. Like their name suggests, these funds will maintain a suitable and typically steady balance across both asset classes. Some balanced funds may have a larger target weight in bonds, while others may have a slightly higher allocation to stocks. Moreover, some balanced funds may focus on global markets, giving investors an additional source of diversification. To invest in balance funds, investors should be comfortable with moderate fluctuations in the value of their investments. As a result, balanced funds are best suited to investors who have a longer time to invest, usually at least 3 to 5 years.
Distributions may consist of net income, and/or dividends, and/or net realized capital gains and are taxable in the hands of the investor. Monthly distributions are made by the last business day of each month, or the last business day of each calendar quarter for quarterly paying fund series, other than in December. The final distribution in respect of each taxation year will be paid or payable by December 31 of each year or at such other times as may be determined by the fund’s Manager. Generally, any capital gains dividends with respect to corporate class funds are distributed within 60 days following the calendar year end. Distributions are automatically reinvested unless an investor elects to receive them in cash. Investors should not confuse a fund’s distribution rate with its performance, rate of return or yield.
Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed or insured by the Canada Deposit Insurance Corporation or any other government deposit insurer, their values change frequently and past performance may not be repeated. The indicated rates of return are the historical annual compounded total returns including changes in unit value and reinvestment of all distributions and does not take into account sales, redemption, distribution or optional charges or income taxes payable by any security holder that would have reduced returns.