Share in the growth of high potential companies

WHAT ARE THEY?
Labour Sponsored Investment Funds (LSIFs) are funds designed to encourage Canadians to invest in small and mid-sized Canadian companies. LSIFs help support the nation's economy by generating income and job growth.

THE BENEFITS
Buy low and grow- Providing the average investor the opportunity to buy shares during a company's building stages, LSIFs give you access to promising businesses who have potential to become market leaders. Usually, such investments would be available only to large, wealthy investors. But, you should be prepared to remain invested for at least eight years to avoid tax credit clawbacks.

Tax advantages- Since LSIFs support the economic well-being of the country, the federal and provincial governments offer tax credits to Canadians who invest in them. The federal government provides a 15% tax credit on a maximum LSIF investment of $5,000 each year. Provincially, most governments offer an additional 15% credit on eligible LSIF investments. Rates are subject to change.

Diversification- Holding a variety of different investments within your portfolio is the best way to protect your money from market fluctuations. Since LSIFs are venture capital investments, they are considered to be higher risk but at the same time offer greater potential rates of return. Remember, the key to successful investing is not avoiding risk, but managing it.

INCORPORATE INTO YOUR FINANCIAL GOALS
In addition to offering tax credits and the potential for high returns, LSIFs are also RRSP eligible. Additionally, LSIFs may specialize in certain sectors of the economy such as information technology or life sciences and vary in the investment stage of companies they represent. To find out how LSIFs can contribute to your portfolio, contact your Rice Financial advisor more information on this and other investment and insurance opportunities.

Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the prospectus before investing. Mutual funds are not guaranteed or insured. Their values change frequently and past performance may not be repeated. The statements contained herein are based on material believed to be reliable but are not guaranteed to be accurate or complete. The article is not intended to provide individual financial tax or investment advice. Particular investment or trading strategies should be evaluated relative to each individual's objectives.