Where To Put Your Money? |

I remember 10 years ago when I just started working at my first job in Canada. I knew I needed to save and grow my money, but I had no idea how to go about doing it.

I was also working 12-15 hours a day and by the time I got home I was too exhausted to try to figure this money thing out. Can you relate?

As business owners, we need to spend the core of our time doing what we’re good at: building our business, which will inevitably give us huge returns later on. Some of us may still have a full-time job, making our time even more precious.

So how exactly do you start investing your money in the midst of everything you have going on?

For some of us, Mutual Funds may be a great option, read on!


A Mutual Fund is basically a collection of different securities (usually in the form of stocks and bonds).

A group of investors pools their money together to buy the different assets in the mutual fund and the investments are managed by a professional money management company.

The goal of the money manager is to invest in securities that will generate positive returns for the group of investors.


Here are a few reasons why you may consider using mutual funds:

  • Low entry pricing
    • Suppose you want to invest in shares of Amazon and Google. At the time of writing, the price of one share of Amazon is $1,742.04 USD and one share of Google is $1,169.36 USD.
    • You would therefore require a large amount of capital to buy a significant amount of these stocks on your own.
    • If you invest in a mutual fund that contains Amazon and Google shares, you are still buying those stocks, but at a much lower amount (sometimes as little as $25 a month), since you would be leveraging the buying power of a group of people.
  • Diversification
    • Let’s say you only bought Google shares and in one particular year the company doesn’t do well. Your investment will fluctuate along with the performance of the company, increasing the risk of losing money.
    • If you bought shares in both Google and Amazon, the probability of the two companies doing badly at the exact same time decreases a bit, so your risk decreases.
    • Imagine if you bought shares in 10 or more companies – your risk decreases even further.
    • This is what happens in a mutual fund. The fund manager buys shares of many different companies and other assets to provide a diverse range of investment opportunities.
  • Professional money management
    • A good fund manager has a team of people doing research for him/her, constantly looking for growth opportunities within companies, sometimes across the globe. They have to be aware of current economic and political climates that may affect the future performance of investments.
    • From a time/value standpoint, having these teams working for you allows you to focus your efforts on building your business, spending time with family and doing what’s most important to you.


Yes, there are fees associated with investing in a mutual fund, called a Management Expense Ratio (MER). These fees differ depending on the management company and the type of services being offered in the investments and it’s usually a small percentage of the total value of your investment.

While there’s a lot of controversy over these fees recently, I urge you to consider it from this angle: As business owners, we expect to get paid for goods and services we provide to our customers, right?

It’s the exact same principle in a mutual fund. These fees go towards paying the fund manager and his team for the research and infrastructure they set up to ensure your money grows. A portion of it also goes towards your advisor for providing his/her service to you.

That being said, I personally don’t believe in paying for service you don’t receive. A good advisor will work with you each year to review your goals to make sure you’re on track with your investments, based on your risk tolerance.

If you are someone who prefers guarantees, I will discuss segregated funds in my next article. Stay tuned!



Kim Lowrie is an insurance agent and mutual fund representative with World Financial Group.

She and her husband have made it their lifelong mission to help families, individuals and business owners succeed financially.

To find a solution that best fits your needs and goals, connect with Kim:



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