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Topic: How To Invest


IVY GROWTH AND INCOME FUND $23.87 (CWA Rating: Conservative) (Mackenzie Financial Corp., 150 Bloor St. West, Toronto, Ont. M5S 3B5. 1-800-387-0780; Web site: Load fund — available from brokers) is a balanced fund, holding a mixture of stocks, bonds and cash. The fund has returned 7.5% annually for the 10 years. It made 10.2% over the last year. The fund’s MER is 2.14%.

The fund’s top stock holdings are Shoppers Drug Mart, PepsiCo, Omnicom Group (U.S. media services), Bank of Nova Scotia, Danaher Corp. (U.S. control products and tools), Reckitt Benckiser plc (UK household & healthcare products), Thomson Corp., Manulife Financial and United Parcel Service.

This $3.5 billion fund holds 21% of its assets in bonds. Interest rates on bonds are now under 5% annually in Canada. That’s the total return that a bond can provide, from today until it matures. However, bonds leave investors at the mercy of inflation, which shrinks the purchasing power of all fixed-return investments. In fact, an upsurge in inflation could wipe out all returns on bonds, and some of their principal besides.

We see Ivy Growth and Income Fund as a hold.

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