What is a Hisa mutual fund?

The concept behind a HISA mutual fund is very similar to a HISA ETF, with some important differences. Where the HISA ETF generally invests exclusively in Canadian High Interest Savings Accounts, some HISA mutual funds may contain a mix of savings account investments and short-term money market instruments.

Why should you invest in a Hisa account?

Cash has always been an important component of a well-diversified portfolio. The cash portion of a portfolio helps preserve capital during market downturns and may act as a temporary hold until new investment opportunities become available. HISA preserves your capital and liquidity by investing in high-interest deposit accounts.

Can a Hisa ETF invest in a savings account?

Where the HISA ETF generally invests exclusively in Canadian High Interest Savings Accounts, some HISA mutual funds may contain a mix of savings account investments and short-term money market instruments. Remember that mutual funds don’t trade on a stock exchange, and this includes HISA mutual funds.