According to this National Post column, Canadian investors are beginning to understand long term damage
of high mutual fund fees.
Not exact matches
They tend to offer
higher investment returns than actively managed
mutual funds, in part because
of their lower
fees.
Madoff underscores one
of those old yarns
of general investing advice: For best results, don't go with fancy
mutual funds or
high -
fee managed accounts.
An early innovation that proved popular with clients was the
Mutual Fund Maximizer; Questrade essentially rebates a portion of most mutual fund trailer fees (which are notoriously high in Canada) to the c
Mutual Fund Maximizer; Questrade essentially rebates a portion of most mutual fund trailer fees (which are notoriously high in Canada) to the cli
Fund Maximizer; Questrade essentially rebates a portion
of most
mutual fund trailer fees (which are notoriously high in Canada) to the c
mutual fund trailer fees (which are notoriously high in Canada) to the cli
fund trailer
fees (which are notoriously
high in Canada) to the client.
Some plan sponsors have been sued for poorly performing portfolios, others for failing to educate participants about the risks
of investing, but many observers predict a wave
of legal action over the
fees —
high fees and hidden
fees — embedded in the
mutual funds that underpin so many retirement accounts.
It can be worthwhile to sell a
mutual fund, especially one intended to be a core long - term holding, if its management
fee and other expenses are
higher than those
of similar
funds with the same investment objective.
What's more private equity firms across the board charge astronomically
high fees compared with
mutual funds — often 1.5 % to manage money, and then another 20 %
of any profits.
As a long - time advocate
of passive investing in low -
fee index
funds (in fact, he's on his way to win a million - dollar bet on an index
fund), Buffett also has some strong opinions on the value
of high -
fee investment structures like hedge
funds and
mutual funds.
-RRB-, Buffett also has some strong opinions on the value
of high -
fee investment structures like hedge
funds and
mutual funds.
This would mean brokers could take undisclosed kickbacks to push certain products, and place their interests ahead
of their customers — recommending
mutual funds and other products that earned them the
highest fees, rather than served the interests
of clients.
A lot
of people who are stuck in
high fee mutual funds, don't have a clue what they own, and don't have a clue what they are really paying for.
Lowest
Fees plus
High Quality
Funds makes Investing with Vanguard a no - brainer If you are looking to bolster the income produced by your portfolio, one of the best Vanguard mutual funds you can sink your money into would be t
Funds makes Investing with Vanguard a no - brainer If you are looking to bolster the income produced by your portfolio, one
of the best Vanguard
mutual funds you can sink your money into would be t
funds you can sink your money into would be the...
Mutual funds have much
higher management
fees than index
funds and almost always will make you less money over longer periods
of time.
They entail significant risks that can include losses due to leveraging or other speculative investment practices, lack
of liquidity, volatility
of returns, restrictions on transferring interests in a
fund, potential lack
of diversification, absence and / or delay
of information regarding valuations and pricing, complex tax structures and delays in tax reporting, less regulation and
higher fees than
mutual funds.
Mutual funds are popular investments, but they can have notoriously
high fees that end up costing investors thousands
of dollars (or more) each year.
In general
mutual funds are more expensive because
of higher expense ratios (the ongoing annual costs), load
fees (typically 2 to 5 percent
of the investment), transaction costs and taxes on short - term capital gains.
When considering alternative investments, you should consider the fact that some products may utilize leverage and other speculative investment practices that may increase the risk
of investment loss and be illiquid, are not required to provide periodic pricing or valuation information to investors, may involve complex tax structures and delays in distributing important tax information, are not subject to the same regulatory requirements as
mutual funds, often charge
high fees including incentive
fees, and in many cases have underlying investments that are not transparent and are known only to the investment manager.
Another big disadvantage
of owning
mutual funds is their
high fees.
Money market
mutual funds own a well - diversified pool
of high quality, short - dated, interest - paying securities, and pass along the income earned on those securities (after
fees) to the
funds» shareholders.
Poor investing choices, too - frequent trading,
high - cost brokers,
mutual fund sales loads, and a host
of other
fees and errors secretly frittered away most
of the investing profits.
The findings suggest average investors might be better served to handle their own portfolios rather than pay the often -
high fees charged by
mutual fund managers, said Andrei Simonov, associate professor
of finance.
Thanks to
high - quality customer service, competitive trading platforms and a large selection
of commission - free exchange traded
funds and no - transaction -
fee mutual funds, Schwab is among our best online brokers for stock trading.
Inadequate regulation allows menu manipulation There are no rules determining which
funds your plan has to offer, so plan administrators load up the menu
of funds with
high - cost,
fee - laden
mutual funds that benefit the company, the plan administrators, and the
mutual fund companies.
Our service includes personalized investment advice for all plan participants and offers low - cost, passive ETFs instead
of high fee mutual funds.
The
high fees of managed
mutual funds has driven the growth
of index
funds; but
fees for annuities are even
higher, making it one
of the most criticized aspects
of annuities.
Mutual funds sold in Canada tend to have high fees: for a balanced portfolio of stock and bond mutual funds, you'll typically pay a bit less than 2 % a year through a bank branch, or a bit more than 2 % through an independent mutual fund ad
Mutual funds sold in Canada tend to have
high fees: for a balanced portfolio
of stock and bond
mutual funds, you'll typically pay a bit less than 2 % a year through a bank branch, or a bit more than 2 % through an independent mutual fund ad
mutual funds, you'll typically pay a bit less than 2 % a year through a bank branch, or a bit more than 2 % through an independent
mutual fund ad
mutual fund adviser.
The Devis can achieve good results with their money with very little effort by selling all their
high -
fee mutual funds, both in their RRSPs and TFSAs, and replacing them with one good
mutual fund such as the Mawer Balanced Fund that carries a decent MER of
fund such as the Mawer Balanced
Fund that carries a decent MER of
Fund that carries a decent MER
of 1 %.
Most
of his holdings are in registered and non-registered accounts — mainly cash and fixed income, with 30 % made up
of high -
fee Canadian equity
mutual funds with management expense ratios (MERs)
of up to 2.4 %.
If you also hold a Canadian equity
mutual fund filled with these same sectors, you may be paying a
high fee to the
fund company for little diversification benefit, since you already own most
of the same stocks.
Charles Schwab has earned its strong reputation: The broker offers
high - quality customer service, two robust trading platforms and a wide selection
of commission - free ETFs and no - transaction -
fee mutual funds.
Currently their real - time
mutual fund trading has a
fee of $ 35, which is very
high compared with other discount brokerages.
Furthermore, most investors don't earn the same returns as the market, due to a combination
of fees (commissions,
mutual fund MERs and portfolio management
fees) and poor market timing (buying
high and selling low).
(Steer clear
of high fee mutual funds which include
fees for advice you don't get.
Cynics might say these newer specialized ETFs tend to carry
higher fees and that the industry may be picking up the bad habits
of the
mutual fund industry, which generally introduces new products whenever it spots a hot new trend that naive investors would be willing to throw money at.
It's worth noting that Group RRSPs limit your options to a handful
of mutual funds that may charge
higher fees than you're comfortable paying.
I've made similar points myself about Canada's industry: can the
mutual fund industry (which charges
fees considerably
higher than America's) really be motivated to tell young investors about the existence
of lower cost and more tax - efficient ETFs?
The reason for no - load, low -
fee, passively managed
mutual index
funds is because there is empirical evidence to suggest that the expenses from loaded,
high fee, actively managed index
funds reduce earnings to even below that
of low -
fee fund.
After all, more than 92 %
of Canadian equity
mutual funds have lagged the market over the past five years, largely because Canada has some
of the
highest fund fees in the world.
I like ETFs because they give me a broad basket
of investments without the
high fees of mutual funds.
Keeping costs low is essential, and most Canadians are paying far too much: about $ 1 trillion is invested in
mutual funds, many with absurdly
high fees of 2.5 % or more.
Bernie Geiss
of Cove Financial Planning in North Vancouver, B.C., argues against investing in seg
funds, because the management
fees are typically
higher than similar
mutual funds.
These
mutual funds cost investors a ton
of money in
high fees... but Edward Jones doesn't care because they want a paycheck.
I am not going to cover all
of the inherent headwinds faced by
mutual funds and the managers such as cash limitations, style limitations, retail fear led redemptions or retail greed led share purchases, egos, bonuses tied to indexes (Active Share), consultants trying to earn their keep focusing on quarterly results, unnecessarily
high fees, etc..
With the transition to transparency and lower
fees, many
of the
mutual funds that are charging
high fees can be replaced with a low - cost ETF that is highly correlated and offers very similar returns to that
of the
mutual fund.
Given that Canadian
mutual fund fees are still twice as
high as comparable products in the U.S., it's not hard to envisage that growing consumer awareness
of the impact
of high fees (perhaps via CRM2) will accelerate ETF growth domestically.
Every academic study on the performance
of mutual funds has shown that lower
fees are associated with
higher returns.
Mutual funds charge annual fees regardless of the fund's performance, and the higher a fund's expense ratio, the more the mutual fund manager must outperform the market to offer investors a better return than low - cost, index - tracking funds which are not actively managed and have fewer operating exp
Mutual funds charge annual
fees regardless
of the
fund's performance, and the
higher a
fund's expense ratio, the more the
mutual fund manager must outperform the market to offer investors a better return than low - cost, index - tracking funds which are not actively managed and have fewer operating exp
mutual fund manager must outperform the market to offer investors a better return than low - cost, index - tracking
funds which are not actively managed and have fewer operating expenses.
Every time you read a family finance profile in the paper, the recommendation tends to be that the couple profiled can save a bundle by jettisoning portfolios
of high -
fee mutual funds.
You have the option
of investing in low -
fee mutual funds into a self - directed RESP (that's what I do and the
highest MER we pay is less than 0.50 %).
Mutual funds are popular investments, but they can have notoriously
high fees that end up costing investors thousands
of dollars (or more) each year.