One-time Investment Calc. Rate of Return Calculator Retirement Planning Calc. Retirment Asset Allocation RRSP Graphing Calculator RRSP Tax Savings Calculator After-Tax Returns Calc. But some funds are much better at absorbing stock shocks than others. All fund managers make stock bets of one type or another.
Active managers have the most freedom to manoeuvre.
Even managers of index funds get to make some market calls, at least when setting up a fund. They can decide which index they want the fund to track. As high-tech giant Nortel Networks Corp. soared or sank, so did the fortunes of many Canadian equity funds, especially index funds. Nortel's dominant weighting sparked debate over the high stock-specific risks associated with the market's most widely followed benchmarks. Because index funds' weightings are based on market capitalization, Goodman argues, they force investors to hold more of a stock after it has gone up.