While they differ widely in style and layout, most mutual fund prospectuses contain similar information, including the fund's investment objectives and policies. Learn how to read this document in Probing the Mutual Fund Prospectus . The buy and hold strategy is the easiest to follow. You simply buy the mutual fund or funds that meet your objectives, and then hold onto them, usually for several years. While exceedingly simple, this strategy does have a couple of big recommendations.
Nobody can predict when a fund is going to take off, nor when it is heading into tough times.
The idea is to put your money into a good fund or funds, and get on with your life. Unless you hold your funds inside a tax sheltered account such as an RRSP, Revenue Canada wants a piece of every cent your funds earn for you. This is the case whether you actually receive the distributions, or simply have the fund company reinvest them in your name. We welcome your feedback. All rights reserved.