Time-weighted vs. Money-weighted rate of return

With the implementation of CRM2, Canadian banks, investments brokers, mutual funds dealers and other financial entities must disclose the method used to calculate the rate of return of a portfolio or investments like an ETF or a mutual fund.

Mutual funds vs. ETFs: basic comparison

Mutual funds remain Canadians’ favourite investment. It is estimated a trillion dollars sits in mutual funds in the country. Although Exchange-Traded Funds – ETFs- have been introduced in the late 80’s, they have only started becoming increasingly popular a few years ago. Mutual funds and ETFs are a bit like cousins. They share a few …

Continue reading Mutual funds vs. ETFs: basic comparison

Understanding fees in mutual funds

There are a lot of discussions on how the Management Expense Ratio –or MER- of a mutual fund directly impacts its returns. As a reminder, mutual funds are actively and professionally managed. It results in a myriad of expenses, paid from the fund, regardless of its performance. These are the MER. However, there are other …

Continue reading Understanding fees in mutual funds

Mutual funds basics

This investment product is very popular in North America. But what is a mutual fund and how does it work? A mutual fund is a pool of money collected from many investors and used to buy securities such as stocks, bonds, money market instruments and other similar assets. The securities in the fund are known as …

Continue reading Mutual funds basics