Mutual funds are not covered by the Canada Deposit Insurance Corporation, the Autorité des marchés financiers’ fonds d’assurance-dépôts (Québec) or other deposit insurance. However, there are some safeguards in place to help protect investors. For example, a mutual fund’s assets must be held separately by a third party called a custodian. This is usually a chartered bank or trust company. Also, an independent auditor reviews and reports on the fund’s financial statements each year. If a firm goes bankrupt There are two funds in place that may help protect your investment if the firm you dealt with goes bankrupt
