How mutual funds fit in No matter what your investment strategy or asset mix, mutual funds can play a key role in your portfolio. Just as mutual funds are excellent RRSP investments, they re appropriate for a post-retirement financial strategy too. In fact, mutual funds may be even more appropriate after retirement than before. A complex portfolio of individual securities may not be suitable for retirees who plan to travel, spend winters outside of the country, or don t have time to manage investments. Not only are mutual fund investments easier for you to oversee, they offer the added benefit of professional investment management.
Mutual funds are also an ideal route to diversification.
When you buy units in a fund, you become part-owner of many individual securities. The wide range of funds available makes it easy to diversify across asset classes. For example, money market funds are suitable for the cash component of your portfolio. Bond, mortgage, and dividend funds are appropriate income investments. And for growth, equity mutual funds, both domestic and foreign, offer good prospects.