INVESTMENT STYLES OF FUND MANAGERS

a) TOP DOWN: managers focus on outlook for economy as a whole, invest in areas of economy their research shows have the most potential for growth and success.

b) GROWTH: Seek larger, established companies with strong earning prospects.

c) BOTTOM UP: focus on the economic outlook of specific companies after detailed analysis of the company's business plan and financial situation.

d) VALUE: companies the manager considers are undervalued - they are trading below their true market value.

TYPE OF FUND

1) T-BILL: Liquidity: saleable in secondary market
Risk: issued by Government of Canada

2) MONEY MARKET FUND: very liquid because cashable on any business day
Risk: T-bills held issued by Government of Canada. Other investments guaranteed by issuer.
-Produce income for investor without risking capital

3) FIXED INCOME FUNDS: generate steady income for shareholders while maintaining safety of principal

4) BALANCED FUNDS: balance between safety, income and capital gains, usually have restrictions on amounts that can be represented in each asset class

5) ASSET ALLOCATION: form of balanced fund, do not usually place any restrictions on fund manager concerning asset classes

6) EQUITY FUNDS: wealth accumulation through long-term capital growth achieved through investments in common shares of publicly traded companies

7) INDEX FUNDS: only stocks in index included in portfolio and it's weighted by industry sector and individual stock in same manner as index

8) DIVIDEND FUNDS: provide periodic income from dividend paying securities; primarily invest in high quality preferred shares of corporations

9) SECTOR FUNDS: invest primarily in a specified industrial sector

10) LABOUR SPONSORED FUNDS: venture capital investments offering generous tax credits

This material is for information purposes only and should not be construed as legal or tax advice. Every effort has been made to ensure its accuracy, but errors and omissions are possible. Individual circumstances may vary and specific legal and tax advice is recommended. Future tax changes and market conditions may affect this information.

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