August 19, 2008 Morning Spot

This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds. If you missed Saturday's show, I spoke on diversification as the key to surviving market volatility. Many investors understand this, and buy a basket of mutual funds to achieve diversification. The problem is, many funds move in tandem, as they tend to hold very simillar equities. Most funds hold many of the stocks that make up the index against which they are neasured, so if you hold multiple Canadian equity funds, you will likely find that their prices very similarly to the index, and each other. With a two or three percent management fee, you are very likely to underperform. Have you outgrown your mutual funds? For a review of your portfolio, or a complimentary copy of my CD, visit my website, www.beyondfunds.ca, or call me, Jeff Wareham, at 519 660 3260. This program is for information purposes only. Fees, management fees, and commissions may be associated with mutual fund investing. Investors should consult a prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital, member CIPF.