Can a client invest in more than one type of UITF?

Investing in more than one type of UITF is indeed permissible and often encouraged, as it allows clients to diversify their investments based on their individual risk profiles and financial goals. Different types of UITFs cater to various investment strategies, risk appetites, and investment horizons. By selecting multiple UITFs, an investor can spread risk across various asset classes, which may help achieve better returns and mitigate potential losses.

This flexibility is important because it means investors can tailor their portfolios to align with their changing financial situations and investment objectives. Each UITF has its own investment focus—such as equity, bond, or balanced funds—allowing clients to match their investments to their specific risk tolerances or market conditions.

The allure of diversification is central to effective investment strategy, as relying on a singular type of fund may expose an investor to higher risks. Consequently, embracing a variety of UITFs enables more strategic and personalized financial planning.