Mutual funds are the primary investment vehicle Carrie uses with her clients at Sun Life. They offer built-in diversification, professional management, and a wide range of risk profiles — making them suitable for investors at all stages of life. But not all mutual funds are the same, and choosing the right combination matters enormously over the long run.
What is a mutual fund?
A mutual fund pools money from many investors and invests it in a diversified portfolio of securities — such as Canadian stocks, global equities, bonds, or real estate. Each investor owns units of the fund proportional to their contribution.
Instead of picking individual stocks or bonds yourself, you get access to a professionally managed, diversified portfolio with a single investment. This is one of the core reasons mutual funds are widely used in Canadian retirement and savings plans.
Types of mutual funds
Invest primarily in stocks. Higher long-term growth potential but more short-term volatility. Best for investors with a 10+ year horizon.
Invest in government and corporate bonds. More stable returns with lower risk. Suitable for conservative investors or those near retirement.
A mix of stocks and bonds in one fund. A popular all-in-one option for moderate investors who want simplicity without sacrificing diversification.
Automatically shift from growth to conservative as your target retirement date approaches. A hands-off solution ideal for RRSP savers.
- Money market funds invest in very short-term, low-risk instruments like treasury bills. Suitable for emergency funds or capital preservation — not growth.
- Sector funds focus on a specific industry (e.g., technology, healthcare, real estate). Higher potential returns but concentrated risk. Generally used as a small portion of a diversified portfolio.
- Global / international funds invest in equities outside Canada, providing exposure to US, European, and emerging market economies for broader diversification.
Sun Life's fund lineup
As a Sun Life advisor, Carrie has access to Sun Life's full range of managed funds and Guaranteed Investment Funds (GIFs). Sun Life GIFs are similar to mutual funds but come with insurance-based guarantees — including a death benefit guarantee and a maturity guarantee — making them particularly valuable for retirement income planning and estate purposes.
Key features of Sun Life GIFs include:
- Maturity guarantee: a percentage of your original investment is guaranteed at maturity (typically 75–100%)
- Death benefit guarantee: your beneficiaries receive at least the guaranteed amount, bypassing probate
- Creditor protection: in certain cases, GIFs may offer protection from creditors — important for business owners
- Reset options: the ability to lock in investment gains and reset your guarantee to a higher value
How Carrie selects funds for clients
Carrie's fund selection process starts with understanding three things about you:
Your investment time horizon
How long until you'll need this money? An investor saving for retirement in 25 years can absorb more short-term volatility than someone retiring in 5 years.
Your risk tolerance
This is both financial (how much loss can you afford?) and emotional (how would a 25% drop make you feel and behave?). Carrie conducts a detailed risk assessment — not just a quick quiz.
Your financial goals
Are you saving for retirement, a home, your child's education, or building general wealth? Each goal may call for a different fund mix and time horizon.
From there, Carrie builds a portfolio across Sun Life's fund lineup that balances growth potential with appropriate downside protection — and reviews it with you annually or whenever your life circumstances change significantly.
Understanding MERs and costs
Every mutual fund charges a Management Expense Ratio (MER) — an annual fee expressed as a percentage of your assets, automatically deducted from the fund's performance. You don't write a cheque for it; it's reflected in the fund's net return.
- A fund with a 2.0% MER and a gross return of 8% delivers a net return of approximately 6% to investors
- MERs vary by fund type — equity funds typically have higher MERs than bond or balanced funds
- Sun Life GIFs have slightly higher MERs than equivalent mutual funds, reflecting the insurance guarantees they carry
- Carrie will always explain the cost structure of any fund before recommending it
Rebalancing your portfolio
Over time, market movements will shift the allocation of your portfolio away from its original target. For example, if equities rise sharply, your portfolio may become more aggressive than intended — leaving you exposed to more risk than your plan calls for.
Rebalancing means periodically adjusting your fund holdings back to their target weights. Carrie reviews client portfolios at least annually and will recommend rebalancing when allocations drift significantly or when your life situation changes — such as approaching retirement, buying a home, or having children.
The most important thing: The best mutual fund is the one you'll stay invested in through market ups and downs. A portfolio that's slightly more conservative than optimal — but one you won't panic-sell during a downturn — will outperform a theoretically perfect portfolio that you abandon at the wrong time. This is why Carrie's risk conversations go beyond the numbers.
Carrie Wang
Carrie is the founder of Seven Lakes Financial Services Inc. and a Sun Life advisor serving clients across Ontario and Saskatchewan. She specializes in retirement, estate, and investment planning, with a warm, personalized approach. She is fluent in English, Mandarin, and Taiwanese.