Chapter 15: Selecting a Mutual Fund

In this section

• How Does Volatility Impact Mutual Fund Returns?
  Explore the core concepts of volatility in mutual funds, understand how it shapes returns over time, and learn best practices and tools to measure and manage risk in the Canadian context.
• Steps in Selecting a Mutual Fund
  Explore a practical, step-by-step guide on how to choose a mutual fund that meets your investment goals and risk tolerance, with insights on KYC, asset allocation, fees, manager expertise, and Canadian regulatory frameworks.
• Other Elements to Consider When Analyzing and Selecting Mutual Funds
  Learn how to align a mutual fund’s objectives and style with client needs, interpret essential disclosure documents, evaluate tax implications, assess load structures and fund history, and incorporate ESG considerations.
• The Role of Fees and Expenses in Fund Selection
  Explore how management fees, performance fees, sales charges, and trailing commissions impact mutual fund selection, and learn strategies to reduce costs while preserving long-term returns.
• Understanding Fund Benchmarks And Performance Comparisons
  Discover why benchmarks matter in mutual fund selection and learn how to evaluate funds' performance against relevant market indexes, focusing on tracking error, absolute vs. relative returns, and risk-adjusted performance.
• Leveraging Fund Fact Documents and Prospectuses
  Learn how to effectively utilize Canadian Fund Facts and Simplified Prospectuses for mutual fund investment decisions, aligning with regulatory requirements, risk assessment, and practical best practices.
• Ethical Considerations in Fund Selection
  Explore essential ethical standards and regulatory obligations for mutual fund representatives in Canada, addressing duty of care, suitability, privacy, and client-focused reforms.