Frequently Asked Questions

Equity funds

• What proportion of my portfolio should be invested in stocks?
  If you have a mid to long term investment horizon, your portfolio should include a percentage of equity funds in keeping with your investor profile and risk tolerance.
  
  The main factors that determine your investor profile are your age; financial obligations; short-, mid-, and long-term financial goals; as well as your tolerance for market fluctuations. Once you have determined your investor profile, your Desjardins advisor can then help you diversify your investment portfolio according to the various asset classes, including equity funds.


Prospectus

• What exactly is a prospectus?
  A prospectus is a legal document that must be prepared and filed as prescribed by the Securities Act. The regulatory authorities require a prospectus to ensure that investors have access to complete information on the securities to be issued. The purpose is to standardize the information available to investors and facilitate analysis of and comparisons between various investments.
  Source : Autorité des marchés financiers

• Whenever I purchase shares in an investment fund, I always receive a copy of
       the prospectus for the funds or portfolios I invest in. Why?
  Desjardins is obligated under Quebec's Securities Act to send investors a prospectus to help them understand their investments. This document is designed to complement the information provided by your Desjardins advisor.
  - Your rights as an investor;
  - The types of investments made by the Funds in which you have invested;
  - The Funds' investment objectives;
  - The investment strategies of the Fund managers;
  - The applicable management fees;
  - The registered accounts in which you may invest.

RESP

• Are RESP contributions tax deductible?
  RESP contributions cannot be deducted from your income tax. However, grants as well as any resulting investment income are tax-sheltered as long as they remain in the plan.

Retirement

• Why do they say that , on average, you need 70% — not 100% — of your income to maintain       your lifestyle during retirement?
  Some expenses, including those related to work, will decrease or disapear when you retire. You will also have fewer taxes to pay and will no longer be making contributions to the Québec Pension Plan or to your employer's pension plan.

• Is it true that most Quebecers' retirement could last as long or longer than their working      career?
  Yes. According to Institut québécois de la statistique, the life expectancy in 2008 was 83 for women and 79 for men.

Impact of interest rate on funds

• How will an increase in the interest rate affect the different types of funds?
  Generally, an increase in key interest rates has a positive effect on money market funds. In principle, the price of bond funds declines in the wake of such an increase. Last, a rate increase that occurs at the beginning of a monetary tightening cycle can positively impact equity funds. It should be noted, however, that this is a global trend and several other factors have to be taken into account.

• Is the impact of an increase in key interest rates less significant on a well-diversified
       portfolio?
  Yes. A well-diversified portfolio includes funds from varied asset classes that react differently to interest rate increases – some positively and others negatively. A good mix between monetary market funds, bonds and equity funds ensures better balance and makes it possible to reduce the overall risk related to changes in interest rates.

Buy Desjardins Funds

• Is there a minimum amount required to invest online?
  You must invest at least $15 in a Desjardins Fund or $25 in a Diapason, SocieTerra, or Chorus II portfolio.

• Can I use AccèsD Internet to buy Desjardins Funds any time of day?
  Yes. You can use AccèsD Internet to purchase Desjardins Funds 24/7.

• How much time is needed to process my request?
  All requests are processed within 24 business hours once received.

• What kind of transaction confirmation will I receive?
  After you purchase Desjardins Funds using AccèsD Internet you will receive a transaction confirmation number on your screen. A transaction notice will also be sent to you within several days.

• Do commission fees apply when I purchase Desjardins Funds online?
  No. You pay no commission or administration fees.

• What else should I consider when I want to purchase Desjardins Funds online?
  If you decide to invest in a registered plan (RRSP, TFSA, RESP, fixed-term annuity) make sure you do not exceed the allowable contribution limits for the current year. You should also make sure to respect contribution date limits so your transaction is credited to the tax year you wish.