Should You Be Investing in Dynamic Funds?
One of the growing trends in investing is to make sure of funds. With the help of funds, it’s possible to build a diverse portfolio that doesn’t rely on individual investments. Fund investing allows you to reach goals by holding a number of investments at once.
Many investors have been shifting to index funds and ETFs, since they are even easier to invest in, at least when it comes to making decisions about which funds to choose. With index funds and ETFs, you don’t try to beat the market; rather, you try to keep pace with the market (you end up a little behind the market, though, once you factor in fees and taxes). As long as the market does well over time, then you come out ahead of your original position.
But what about if you want to attempt to outperform the market? Do you want to try to beat the TSX? In order to do that, you might need to take a more active approach to your investing. This doesn’t mean that you have to become an active trader of individual stocks. There are funds that are actively managed, and that have the potential to perform well over time. Dynamic Funds is a company that offers these types of fund options.
What Offerings are Available with Dynamic Funds?
With Dynamic Funds, you have the opportunity to choose investments based on your investment goals. Each of the funds performs a different purpose. For instance, if you want a fund that is designed to provide you with growth, the Dynamic Power Canadian Growth Class or the Dynamic Power American Growth Fund, could offer you that. There are balanced funds and small cap funds that can also provide you with different levels of growth.
But it’s not just growth available. Dynamic Funds also provides a selection of value funds. You can find value funds from different parts of the world as well, investing in Europe or the Far East. It’s also possible to use the Global Asset Allocation Fund to create geographic diversity in your portfolio. Dynamic Funds also offers equity income funds, blue chip funds, fixed income funds, and specialty funds (such as those based on gold or energy or real estate).
No matter your investing goals and preferences, you can usually find what you are looking for. And many of the funds offered by the company have seen decent growth recently. Of course, past performance does not guarantee future results, but it can give you an idea of the track record that is expected with some of these funds.
Another thing to consider is the fact that these are actively managed funds. This means that your expenses and other fees are likely to be higher. There is the chance that you will see solid performance, but you also have to contend with the likelihood that higher fees reduce your real returns. Of course, if the funds do well enough, that isn’t such a big deal, since the higher returns can offset your fees.
Dynamic Funds is a company that provides you with additional choices, and market-beating potential. But you could also lose out. You need to examine your investment style and your goals to determine whether or not managed funds are really right for you.