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You can purchase mutual funds from several sources including a stock broker, mutual fund salesperson, or a financial advisor. Your cheque is payable to the selling firm and it is deposited to a trust account and sent directly to the specific â€" mutual fund company. As interest rates have _ declined, individuals have considered other options. _ Many have invested in mutual funds. Uinvestment s have been an extremely attractive option for=s the â€" past decade. But interest rates have significantly and popularity. The value of mutual funds has shot up to approximately $70 billion dollars in Canada. You can see the result of this _ by the overdose of advertising by the fund companies to attract your dollars. The question most often asked is how safe is a mutual fund? Safety is â€" an important feature of any investment and this becomes more important the older you are and the more money you have. 400 6n t id d d scb Th? * next planning. He can questi0n..18. W hat.. reached at 842â€"7602.. There are strict laws in place to safeguard your investment in mutual funds. But as _ with â€" any investment, there is always some element of risk. Alternatively, the cheque is made out directly to the fund company and it is delivered to that fund company. Either way, your funds get to the mutual fund company. Weigh benefits risks of mutual funds If <the ~sales person leaves the company or the firm goes out of business, that is not a financial risk. happens if the mutual fund company goes out of business? Do you lose your money? Your risk is not so much with the mutual fund company, but the actual underlying investments. To be specific, we can consider an example. No. The mutual fund company‘s role is to provide Assume _ you invested in â€" a mutual fund that invested equally in 50 stocks and 50 bonds. If one of those companies went out of business and the share value decreased to zero, you would lose 1% of the value of your investment. The actual funds and securities are held by either a bank or trust _ company. This arm‘s length management. You own the assets, not them. They just manage the money. arrangement is governed by very specific Canadian securities laws. This does not guarantee future performance, but it does give you a good historic perspective of the downside. Peter Watson, MBA, CFP, RFP is the president of Peter Watson Investments Limited â€" an Oakville firm specializing in retirement planning, RRSPs, and investment planning. He can be investments, not the fund manager. You can determine the level of risk by the type of mutual fund that your purchase. A good way to judge the potential risk is to ask to see the worst two years of performance of a fund, or a fund manager, over the last 10 years. Your ultimate risk is with the if the fund scoes out BOSLEY CO. LTD. REALTOR 321 Lakeshore Rd. E., Oakyville 845â€"9350 CHARMING 2â€"STOREY Move right in. Quiet culâ€"deâ€"sac $179,000 TINA PRITCHARD* Nestled south of Lakeshore, this prime 1/4 acre property boasts mature trees, gardens, southern exposure and great lake views. Updated 3+1â€"bdrm., bungalow, 2 baths, professionally finished lower level. Priced for immediate action at $289,000. For information, call 827â€"3809. No agents please. OPEN HOUSE SATURDAY, APRIL 10 1â€"4 p.m. 3066 SENECA DRIVE