Before you get in to something get your self a good book and read.
buy stocks your self and avoid paying fees to all this brokers which
amounts to almost half of your earnings from stocks.
When you learn this you'll be much safer also.
Read Yarislovsky ,smart guy don't listen to any advisors,they know bull.
Spend time reading and you'll be smarter then most of them.
BUT if you really want to safe on 2007 income tax go with MUTUAL FUNDS.
Mutual funds aren't exactly a magic bullet either, since the high fees amd MER can eat away pretty much all your gains in all but the best years.
Mutual funds are not all created equal.
Anyway, I'm not worried about the 2007 tax year, I was up to my RRSP limit a while ago. Lookin to the future here.
No MF's are not the magic bullet but they're not a russian roulette like
ordinary stocks are.
You can find MF's with low loads or learn how to negotiate them with brokers.
And you're right MFs are not created equal.As for the future ???near or far ???you better off start to read and learn the facts about investing.
Many peoples loose their money and then they start to read.
I'am not lecturing you.Just friendly advice.
The last year and a half have been really tough for stock markets (and thus mutual funds). Stick with it, keep buying and you will do well in the long term. Actually, Right now is a great time to be buying into equities and funds, since most of them have been going down for quite a while, you are basically buying them "on sale."
That being said, it's worth reading a few books on the subject so you know a little about investing. For Canadians I highly recomend Gordon Pape. I also like the Motley Fool guys, and the Armchair millionaire.
Action Direct, though CIBC offered me a really great deal on a bulk package...good thing I didn't move because Action Direct came out with a similar one to compete!
You really should know a fair bit about this sort of thing if you are going to invest in stocks yourself, otherwise just find a good mutual fund and invest in it trusting the fund manager (they get fired if they are horrible so hopefully that helps you sleep at night) Or even just go with a broker (those Edward Jones guys might not even be a bad idea, though it would depend on how much you were going to invest whether I'd trust them or not).
Just as a little update, I'm now signed up with Credential Direct, and the expereince has been pretty good so far. The one time I phoned them with a question I didn't have to wait on hold for more than a minute, and the person actually spoke english without an accent. I probably won't qualify for the "active" trader discount, so stock trades are $19 which is not the lowest in the country, but it's pretty competitive for the low number of trades that I'm making.
I'm currently working on the ishares exchange traded index funds as an alternative to "conventional" mutual funds. I find them pretty attractive due to the low MER. These are inteded as buy and hold investments. I'm not looking to day trade.
And right now is still a great time to be buying on pretty much any index. US Large, small or mid cap, Canadian small or mid and also dividend indexes are all at lows.