What type mutual funds are best for a married couple in canada?

Equity funds, fixed-income funds, or money market funds. And specifically which funds in canada. me and my husband just wed, want to save up for a better home. any recommendations for what mutual fund, please and thank you.
Asked Jan 06, 2013
My advice is, don't take my advice. :-)

The common denominator in almost all of the tragic stories of people who lost their nest egg in investments were cases where they trusted someone else to manage their money. Rule number one is, learn what works and what doesn't well enough that you understand what you are doing. A good way to do that is to set up a simulated trading account.

Most brokers have simulated trading where they put an amount like 100,000 of "play money" in an account and you trade it just like you would real money. I would save my cash and trade the "funny money" until you get to where you can consistently produce gains.

Any successful investment program is about managing risk. Learn to put more of your money in equities when the risks are low and into safer investments when they are high.

Mutual funds cost more in management fees and can be difficult to get out of. I would look at Exchange Traded Funds (ETFs). They are a basket of equities that represent indexes like the Dow, S&P, national stocks like Canadian industries (Symbol EWC) or individual sectors like energy or financials. ETFs are traded the same as stocks but instead bearing the risk of one stock that might lose a lot or go bankrupt, the risk is spread over a number of them. For example the symbol "SPY" represents the S&P 500. If the fund was distributed equally over all 500 companies and one goes broke, your exposure is 1/500th in that company as opposed to 100 percent if you had the same amount in the bankrupt business.

If you are like most of us when we started out, you have more time than money. Use that time to learn as much as you can and don't go live until you can prove your methods. It isn't luck, the people who do well in the markets do so because they know what they're doing. Hope you make a million. :-)

Answered Jan 06, 2013

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