Mortgages - offering capital stability and income.
Mortgage funds pool investors' money together to lend to borrowers. They invest in a portfolio of loans, each primarily secured by first registered mortgages over the properties of the borrowers to lower the risk of capital loss. The income paid regularly to investors comes from the interest collected from borrowers.
Mortgage funds can provide investors with capital stability and consistent income returns. Risk is also reduced by the diversification by geographic location, loan size, interest rate type and loan maturity portfolio of the pool of loans.