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Value in m onitoring O akville H om e V alu es up 28% yourinvestm ents recommend you monitor your invest ments to decide whether changes need to be made. Many Canadi ans own activelyGuest Contributor managed mutual funds. They are a of mutual funds for years. simple way to invest. Unfor Its SPIVA® Canada Score tunately it' s not that simple card reports on the activelyto evaluate their perfor managed Canadian mutual mance. Actively-managed funds against their bench mutual fund companies use marks, corrected for survi performance advertising to vorship-bias. attract investors. These ads If a fund is pulled off the tend to highlight successful market, S& P will capture past performers, but not all performance hgures from funds perform well. those funds in order not to The actively managed distort the evaluation. mutual fund manager de S& P results for the period cides which stocks, bonds, ending Dec. 31, 2 0 1 6 show or other assets the fund will performance of activelybuy with investor dollars. managed mutual funds has Sometimes managers are again been disappointing, rated against others. That relative to the markets they can be useful, but a more have been investing in. thorough analysis is often Only 3 0 per cent of m u desirable. tual funds investing in Ca A better way to evaluate nadian equity managed to the ability of mutual fund outperform the Canadian managers is to compare the equity benchm ark over hve return on investment they years ending Dec. 31, 2016. have provided to the under Zero mutual funds invest lying market they invest. ing in U.S. equity managed F o r example, if you own to beat that market over the a mutual fund that invests in same time period. Canadian stocks, it is benehFinally, international eq cial to compare investment uity managers only beat the returns of your fund against underlying market 10 per the underlying benchmark cent of the time for the hve of Canadian stocks. years ending Dec. 31, 2016. H ow did the Canadian All investors are encour stock market do? H ow did aged to evaluate their invest your mutual fund manager ment performance in light of do investing in Canadian fees paid. If you are paying stocks? This type of moni for superior returns, then toring requires some adjust you should receive them. ments to account for survi If you don't get satisfac vorship-bias. tory returns after the cost of Mutual funds introduced mutual funds are deducted, to the market are sometimes then look for other options. withdrawn or merged into The investment business other funds to hide poor is extremely competitive performance. and m ore low-cost invest Survivorship-bias occurs m ent options are becoming when poorly-performing available. Decide if owning funds are eliminated from high-cost, actively managed, the data, making results mutual funds is to your look better than they are. advantage. If not, consider Research shows there is other low-cost alternatives. a high correlation of funds -- Submitted by Peter withdrawn from the mar Watson of Peter Watson ket to those that have per Investments and Aligned formed poorly. Capital Partners Inc., MBA, Standard & Poor has CFP R.FP, CIM, F C S I, Cer been tracking performance tified Financial Planner 25 |Thursday June 1, 2017 | OAKVILLE BEAVER |www.insidehalton.com I Dollars & Sense Peter Watson ENERGY STAR Enbridge Home Energy Conservation Program GET $ UP TO 2 1 0 0 IN REBATES EASY PAYMENT PLANS FROM 49 AIR MILES On Your Enbridge Gas Bill* EARN h w Reward Miles For booking an in home estimate Visit our Facebook page /CONSUMERSCHOICEWINDOWS CONSUMER'S w O N T A R IO 'S L E A D IN G H O M E IM P R O V E R IINDOWS i n d o w s &DOORS WWW.CONSUMERSCHOICE.CA Call for a no obligation estimate or our newest showroom or kiosk location 1-800-565-7366 [ DISCOUNT CODE 99.7% C u sto m e r A t you ro p tio n ,C on sum ers C h oice's charges w ill appear inth eO th er C om pan ies sectio no f you rE n brid ge G as D istrib u tio nb ill. T hese offers an d claim s are m ade b yC on sum ers C h o ice alo n e. C on sum ers C h o ice is n o t ow ned b yor affiliatedw ith E n brid ge in c . or E n brid ge G as D istrib u tio n . ®TM T rad em ark so fA IRM IL E S In te rn a tio n a lT rad in gB .V .U sed u n d er licen se b yL o y alty O n e ,C o . an dC on sum er's C hoiceW indow s.