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Internet Exercises
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1

Most mutual funds in Canada belong to The Investment Funds Institute ofCanada. Log in to its Web site at www.ific.ca. You will find some essential informationabout mutual funds and a useful fact book titled "Mutual Fund Investing." Ensure that youknow the basic types of fund. For example, can you explain the difference between a bondfund and a money market mutual fund? Look on the Web site for the amount of assetsmanaged by mutual funds. Have mutual fund assets been increasing or decreasing over theyears? What are the advantages and also some of the risks associated with investingthrough a mutual fund?
2

Here are the Web sites for three of the largest mutual fund companies in Canada:
  1. RBC Asset Management: www.rbcam.com
  2. Investors' Group: www.investorsgroup.com
  3. AIM Trimark Investments: www.aimtrimark.comPick three or four funds from one of these sites and compare their investment objectives,risks, past returns, fund fees, and so on. Read the prospectuses for each of these funds;they are usually clear and informative. Who do you think should, or should not, invest ineach fund? Which one would be most appropriate for a young financial executive savingfor retirement?
3

We mentioned in Chapter 1 that large banks have their fingers in many pies. TheWeb sites of the very largest banks are equally massive. The Royal Bank of Canada(www.royalbank.com) and Scotiabank (www.scotiabank.com) are examples of two ofCanada's largest banks with relatively straightforward Web sites. Use these Web sites andthe bank's annual reports to find what services banks provide to individuals, small businesses,and large corporations.
4

The Globefund section of GlobeandMail.com provides data on mutual fund performance.Log in to http://globefunddb.theglobeandmail.com/gishome/plsql/gis.analyser. Thisgives recent returns by category of fund. Similarly, if you go to www.globefund.com/review,you will find performance tables for different categories of mutual funds over 1, 5, and 10years. Select any two or three categories; for instance, you could select Canadian Equity,Canadian Short-Term Bond, or Labour-Sponsored Venture Capital funds. From the performancedata, can you discern whether a particular mutual fund has performed unusually well orbadly at certain times? Can you provide any explanations for such performance? Now go tothe "tools" sidebar and click on "fund filter." By selecting the above mutual funds can youstate how these funds have performed over the last 30 days? Are these funds investing in smallrather than large company stock, growth rather than value stocks, or specializing in a particularindustry, such as precious metals or real estate?





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