Staying on track with your mutual funds during market corrections

    TORONTO, Feb. 26 /CNW/ - It's natural to be concerned when markets
fluctuate more than normal, but well-diversified investments such as mutual
funds can go a long way to protecting you during turbulent periods.
    "Mutual fund investors are usually in good shape during market
fluctuations because of diversification, the advantage of dollar cost
averaging and professional portfolio management," says Joanne De Laurentiis,
president and chief executive officer of The Investment Funds Institute of

    Here are some helpful tips to keep you focused:

    1.  Focus on your objectives: Short-term market fluctuations should not
        be a concern for investors with an appropriate time horizon and a
        diversified portfolio matched to financial objectives.

    2.  Remember the benefits of diversification: A diversified portfolio
        made up of equities, fixed income assets and interest-bearing
        investments will cushion investors in a market correction. The
        portfolio should be weighted to suit individual risk tolerance and
        investment objectives.

    3.  Invest regularly: Maintaining the discipline of regular contributions
        is important and awards you with the benefit of dollar-cost
        averaging. This strategy allows a person to spread out the average
        cost per unit of buying mutual funds, reducing the risk of buying at
        the wrong time, and increases the number of units you buy.

    4.  Understand your risk tolerance: Once you have established your
        tolerance for risk, you should periodically review your portfolio and
        make sure your risk tolerance matches the types and asset mix of
        investments your portfolio holds. If economic or personal
        circumstances change, adjust your portfolio to your level of risk
        tolerance. An investment advisor can help you.

    Contact a professional investment advisor to learn more about
diversification, risk tolerance and long-term financial planning.
    For more information about the benefits of mutual funds, visit The
Investment Funds Institute of Canada's website at

For further information:

For further information: The Investment Funds Institute of Canada, 11
King St. West, 4th Floor, Toronto, Ontario, M5H 4C7, TEL (416) 636-2158, FAX
(416) 861-9937, WEBSITE

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