|
Our Services
 Financial Planning
Investment Solutions
Protection & Insurance
Tax Shelters
Saving for Your Kids
Retirement Planning
Estate Maximization
Charitable Giving
Our Products
Becoming a Client
|
|
Investment Solutions
Depending on the size of your account, your risk tolerance and market conditions, we use a variety of products to satisfy your financial goals.
Your portfolio may be constructed using advised or managed accounts or combinations thereof.
Advised Accounts are run on a traditional, non-discretionary basis, which means we obtain your agreement before making any transactions on your behalf. We make recommendations for these accounts but you maintain ultimate control over the investment decisions. These accounts can hold virtually any investment vehicle, including stocks (links to research) bonds, mutual funds, managed money, and GICs.
Managed Accounts are run by external investment managers on a discretionary basis. In these accounts you enjoy the benefits of owning the individual securities in your account. Managed Accounts alternatives include:
Integrated Managed Account (IMA)
Blackmont Capital offers one of the most unique investment platforms in Canada: their Integrated Managed Account (IMA). This powerful, unlimited platform delivers pension fund management and reporting of your assets at a competitive cost. It allows us to use some of the best, most tax-efficient investments in the industry, gives us access to exceptional money managers at reduced rates, and helps us build your portfolio with cost-effective investments that provide advantageous tax deductions for your non-registered accounts.
Mutual Funds — A Definition
A mutual fund is an investment that pools money from many individuals and invests it according to the fund's stated objectives.
Professional money managers make investment decisions on behalf of fund investors, buying and selling investments such as money market investments, bonds and stocks.
Advantages of Mutual Funds
- Professional Money Management — Mutual funds are an ideal investment for people who don’t have the time or knowledge to select securities themselves. Funds are a cost-effective way for small investors to have a full-time manager to monitors their investments.
- Reduced Risk — Owning shares in a mutual fund instead of owning individual stocks reduces your risk through diversification. When you invest in a large number of assets (mutual funds often own hundreds of securities in various industries), a loss in any one investment can offset gains in others.
- Cost-Effectiveness — Mutual funds buy and sell a high volume of securities at once, so their transaction costs are lower than individual investors would pay. Small investors can build a strong portfolio while paying relatively low fees.
- Liquidity — When you invest in mutual funds, you can convert your shares into cash at any time (the same is true for stocks).
- Convenience — It’s easy to invest in mutual funds. Most banks have their own, and you don’t need to have much money to invest. Most companies have automatic plans that enable you to invest as little as $100 monthly.
Disadvantages of Mutual Funds:
- Professional Money Management — Many investors question whether money managers are better qualified than they are to select stocks. Managers are not infallible and earn their fees even if the fund loses money.
- Potentially High Costs — Mutual funds exist to turn a profit. The industry is adept at hiding complicated costs under layers of baffling language.
- Over-Diversification — Too much diversification, or dilution, can occur when funds hold too little stock in too many different companies. Even if a few investments earn high returns, they might not have enough impact overall. Dilution can also happen when successful funds grow too big: money pours into successful funds and the managers must struggle to find a good investment for the newly acquired capital.
- Higher Taxes — Mutual fund managers often fail to consider the personal tax implications for their investors. For example, when they sell a security, it triggers a capital-gain tax, which affects your profit. It might be in your best interest to defer the capital gains liability.
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
|
