Quote:
Originally Posted by Ovaltine88
I knew that, just I don't see much value in mutual funds/bonds or t-bills, so TFSA means stocks to me.
Recently I have been reading this fund.
http://www.evolutionfund.ca/index.html
I never had any experience with mutual funds, it seems like this fund is based on the thriving housing market of Vancouver. When the housing market is good, the return is okay, but what happens when the market bubbles? Should I be worried about it? Is there more value in stocks? I am skeptical about mutual fund, but don't mind putting 5-10k in it.
Hi,
I am a financial advisor with a independent financial group from Vancouver and we have been recommending this fund for our clients in the past year. Their target is 12% which is infinitely better than any mutual fund we sell. Note however that Evolution Fund is
NOT a mutual fund.
We also recognize how it's susceptible to a real estate bubble, therefore we constantly re-evaluate it if we need our clients funds' to quickly GTFO. We do consider it a short-term investment that needs constant re-evaluation, unlike something like mutual funds.
The head of my financial group has a great relationship with Tess Lawson, the current CEO. I did some research in attending a company function to talk to Tess personally and going to a few conventions hosted by Metro Vancouver (
http://en.wikipedia.org/wiki/Metro_Vancouver), discussing the green initiative in the Lower Mainland.
In regards to your questions, I want to emphasize that I don't represent Evolution Fund. That being said, I have found the answers to these questions that I asked months ago.
As you know from reading about the fund, Evolution Fund invests in equipment leasing and equipment financing. The equipment leasing is paid for by tenants of buildings. The leases become as necessary to pay as strata fees. They are simply expenses that each building owner will force its tenants/owners to pay for.
A potential real estate market bubble is definitely the biggest thing to worry about it when investing in this fund. My personal opinion is that a real estate market bubble will affect the fund with some time lag. If/when it does happen, it's my personal belief that it won't collapse before anyone can blink. It would be more gradual than that, at least if you kept an eye on the market. In terms of who gets what when an apartment complex does go bankrupt, I'd have to search through my files and figure out who gets priority, and where Evolution Fund investors are at. Let me know if you really want to know about this.
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I feel like I need to add a disclaimer that I am quitting my job as a financial advisor in a few months because personal finances are too simple to keep me satisfied. As I slowly learned through my experience and this subforum, financial planning is a sales job and not an actual job in the financial industry.