Discover the best investment strategy for your goals with Walton Financial Group in Barrie, Ontario. Learn the key differences between mutual funds and ETFs, and how actively managed mutual funds can enhance your portfolio. Contact us today!
Walton Financial Group in Barrie, Ontario features actively managed mutual funds
One of the most common misunderstandings among DIY investors is that mutual funds are bad while exchange-traded funds (ETFs) are good. This oversimplification is rooted in the idea that mutual funds are expensive and ETFs are cheap. While this may have been true in the past, the investment landscape has evolved significantly.
Index funds, whether mutual funds or ETFs, aim to replicate the investment performance of an underlying benchmark, which is why they are considered “passive.” The goal of these funds is to deliver performance as close as possible to the underlying benchmark without active decisions by the fund managers.
On the other hand, actively managed funds strive to beat their benchmark on a risk-adjusted basis. Fund managers use their skills, knowledge, and research to select the portfolio’s components. Because fund managers are compensated for their expertise, actively managed funds incur additional costs. However, these costs are justified by the potential for superior results.
At their core, mutual funds and ETFs are structures that deliver an underlying investment strategy to investors; the structure itself does not define the strategy. While both are pooled investments, the similarities end there. Active management is a defining difference, and Walton Financial Group works with various actively managed funds, including:
- Money Market Funds
- Bond Funds
- Stock Funds
- Target Date Funds
For most Canadians, the focus should be on aligning the underlying investment strategy with clear objectives. This is where the expertise of financial professionals like Walton Financial Group in Barrie, Ontario, becomes invaluable. Walton Financial Group can help you develop an investment strategy that aligns with your goals and offers a wide range of actively managed funds from which to choose.
Contact Walton Financial Group in Barrie, Ontario, to learn how an actively managed mutual fund can work for you.
