Mutual Funds

Canada Gets an F in Mutual Fund Fees

By Kanwal Sarai
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Canadian Capitalist posts a great article about a recent Morningstar report that shows how bad mutual fund fees in Canada are when compared to other nations.

“The report found the median asset-weighted expense ratio to be 1.31% for fixed-income funds, 2.31% for equity funds and 0.80% for money market funds. These fees were the highest among the 22 countries in the survey for equity funds, third highest for fixed-income funds and tied for highest for money market funds. Morningstar found the fees so bad that they ranked Canada an F, a grade that none of the other 21 countries received in any of the four categories — regulation & taxation, disclosure, fees & expenses and sales & media — in the survey.”

Click here to read the complete article.

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Kanwal Sarai

With more than 27 years of investing experience and a passion for investing and teaching, I demystify the world of investing. My goal is to help you grow your net worth by investing in quality dividend paying stocks. Build your own stream of increasing income today.

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Showing 2 comments
  • Invest It Wisely
    Reply

    This doesn't really surprise me. However, it's possible to get at least to the ~1% range or slightly below for equity funds — last I checked, RBC and TD had semi-decent options here.

  • Kanwal Sarai
    Reply

    @Invest It Wisely You are right there are some good options, I just wish more people knew about them and stopped wasting money on funds charging +2%. The only MER I'm happy paying is 0% 🙂

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