All assets in a mutual fired, however, are kept separate from the mutual fund company and are held in trust by a Canadian chartered bank or trust company, and as such are protected under banking and trust laws. This segregation is important. It means that even if the company itself collapses, the assets of the mutual fund are protected. These safeguards do not mean that the value of your investment will not increase and decrease in value. Mutual funds are not a magic carpet ride to continuous high returns.
Many funds have decidedly bumpy rides, some even nosedive.
The extent to which your investment fluctuates will, of course, depend on the type of fund you hold and the expertise of the manager. The bottom line here is that although mutual funds are not insured, there are many safeguards in place to ensure that no one runs off with your money. The NAV is the price of one unit in a mutual fund. Mutual funds are not insured. Load funds charge sales commissions.