A professional financial advisor can help you set realistic goals and understand the investment products that make sense for your portfolio, and then help you monitor and understand how your investments have performed. With a trusted advisor and a financial plan tailored to your goals, you are on your way.
Working with a financial advisor can provide you with a better chance of:
Source: IFIC Value of Advice Report, 2012.
Obtaining good advice can help you make better decisions.
It can help you avoid mistakes, turn challenges into opportunities and solve problems. Financial advisors provide convenient access, counsel and guidance to help investors grow their financial assets, and play an important role in helping you develop greater savings discipline.
Academic† research indicates that households who have a financial advisor
than those who don't.
Investors that receive advice are much better off when they have an advisor – and the longer that relationship lasts, the better.
In fact, recent research shows that investors who work with an advisor
than those who don't.♦
4-6 Years †
7-14 Years †
15 Years+ ♦
†Econometric Models on the Value of Advice of a Financial Advisor, CIRANO Institute, 2012.
♦The Gamma Factor and the Value of Financial Advice, Claude Montmarquette, Nathalie Viennot-Briot, 2016
People who work with financial advisors benefit from
regardless of income & age.
The Gamma Factor and the Value of Financial Advice, Claude Montmarquette, Nathalie Viennot-Briot, 2016.
When asked about financial advice, research shows that Canadian investors identify their financial advisor as their most trusted source of investment advice1.
1 Pollara 2016 2 CFA Institute 2016 3 Ascentum 2013
Mutual funds provide easy access to innovative solutions managed by highly trained investment professionals, while protecting investor interests. They can fulfill the needs of any investor portfolio, from the smallest investment accounts to the most affluent households.
When you purchase a mutual fund, you not only buy the product, but also the financial know-how of the portfolio manager. Managers that use an active management philosophy invest in a manner that is different than the benchmark, with the goal of outperforming the benchmark. An actively managed fund can provide substantial value and help differentiate investor portfolios.
Mutual funds are available through a variety of channels, with advisors being the most popular way for Canadians to purchase mutual funds‡. Financial advisors act as intermediaries between mutual fund providers like Dynamic Funds and investors to make the funds available for purchase.
At Dynamic Funds, we emphasize the importance of reliable financial advice when determining your investment strategy. An independent financial advisor can help you manage your goals and develop a process that is specific to your savings objectives.
‡Mutual fund MERs and cost to customer in Canada: Measurement, Trends and Changing Perspectives, Investor Economics 2012
There are thousands of financial advisors in Canada, each with their own unique process and way of operating. All financial advisors selling investment products must be registered with the provincial securities commissions. Most advisors are registered to sell either mutual funds only, or mutual funds and stocks and bonds. Many registered financial advisors will also provide comprehensive financial planning, sometimes for an extra fee.
You should determine your needs before you decide what type of advisor you want to work with. For example, do you simply want someone to help you choose investments or do you want to work with someone who will develop a financial plan for you and then help you to execute that plan? Are you interested in looking at ways to reduce your taxes? Many advisors can provide you with guidance on all these issues.
There are lots of questions you can ask a potential advisor to help you find the right one for your circumstances. First and foremost however is to look for someone who is committed to the profession. You will want to know about credentials and experience as well as their efforts to enhance their advice through continuing education.
Here is a list of questions to ask and what to look for in the answers you receive:
Here are some useful websites that can help you find an advisor that is registered in your area:
Here are some useful brochures to help you learn about the value of investment advice and the important services you receive for the fees you pay.