A mutual fund is a professionally managed pool of investments representing the contributions of many investors.

Mutual funds have specific investment objectives that determine the types of investments the manager will make on your behalf. Some mutual funds invest in corporate or government bonds and some invest in Canadian or international stocks. Other mutual funds invest in a combination of stocks and bonds.

There are benefits to investing in a mutual fund.

Professional management - Your money is invested by experts
Affordability - Start investing with as little as $500 or monthly contributions of $25
Diversification - Your money is spread across many different investments
Choice - You can choose from a wide variety of funds
Flexibility - Mutual funds can be bought and sold on any business day

There are thousands of mutual funds out there. And choosing the right ones depends on your investment personality and goals.

Are you an aggressive investor who can tolerate risk? Or maybe you are a conservative investor who has trouble sleeping at night knowing that the value of your portfolio might be fluctuating.

Are you saving for retirement 30 years from now? Or maybe you want to buy your dream house in the next few years.

You need to consider all of these factors when formulating your investment strategy. And there's no one better to help you do that than an investment advisor. Your advisor will work with you to determine the best strategy for reaching your goals and will pick the funds to get you there.

There are some basic principles to successful mutual fund investing. The ones you should know to start with are:

• Don't try to time the markets
• Invest for the long term
• Invest regularly for best results
• Reduce risk through diversification

Following these basics can help you achieve your after-work dreams.