You cannot compare the rates of return between different types or categories of funds - you have to compare apples to apples, oranges to oranges. For example, it is pointless to compare the results of a fund that invests in oil and gas exploration companies with one that invests in well-established companies. The risks are quite different, as are the possible returns on the investments. Fortunately, the financial press regularly report the performance of Canadian mutual funds by type. This makes it very simple for the investor who is considering, say, a growth fund, to compare all similar funds.
Most funds have their shares or units valued daily.
This means that investors may purchase shares or units on any business day, and in most cases, may redeem or sell those units or shares back to the fund on any business day. There are hundreds of funds available in Canada offering a broad range of investment objectives and investing in a variety of securities and in a variety of geographical locations. For example, there are funds that invest in Canadian common stocks, US common stocks and international common stocks. There are also funds that invest in the stocks of specific industries, such as natural resources or oil and gas stocks. Some funds invest only in gold other precious commodities.