Many bank employees are now taking the Canadian Investment Funds Course. This allows the branch tellers to sell mutual funds to bank customers. Even though there is in house training, this one course essentially allows employees to sell quite complex products to investors that are mainly unsophisticated. Allowing a professional to manage your money will save time. However, most investors that do this probably have little to no idea who is managing their money. Investment representatives or brokers are more interested in selling fund products that generate higher commissions and yearly fees. Brokers will usually show you what you want to see. It's called marketing.
"For the individual, it is worth pointing out that the investment industry, to a large extent, caters to people's emotions. The 24-hour-a-day investment channels that continuously flash the stock prices at the bottom of the screen help create excitement by highlighting the daily fluctuations of the stock market and stock prices. The sponsors of these programs are usually the brokerage companies, who in this case, may be compared to the "house" in gambling parlance. Whether the client wins or loses, the house makes money."
Chapter 16: Recommendations
Equity based funds tend to gyrate tremendously in value. Luckily your bank account isn't as erratic. It's insured and protected by the Canadian Deposit Insurance Corporation. Unfortunately any mutual funds that you might own are not.
Andy Filipiuk has obtained a B.P.H.E from the University of Toronto and an M.A from the University of Western Ontario. He lives in Toronto and is vice president of a major Canadian brokerage firm that manages over 90 million in investments.