Investment funds, commonly referred to as mutual funds, are the longest-established form of managed funds. The Investment Funds in Canada course explains that mutual funds have existed for decades and were created to allow individual investors to pool their money and gain access to professionally managed, diversified portfolios. This structure predates hedge funds, segregated funds, and discretionary portfolio management services.
Hedge funds are a relatively recent development and are generally restricted to accredited or sophisticated investors. Segregated funds were introduced later by insurance companies and combine investment features with insurance guarantees. Discretionary management is a service model rather than a fund structure and became more prominent as wealth management evolved.
The CIFC text emphasizes that mutual funds form the foundation of the Canadian managed products industry due to their accessibility, regulatory oversight, and long history. Because investment (mutual) funds were the first widely available managed investment vehicle, Option B is the correct and fully verified answer.
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