August 8, 2008

This is Jeff Wareham, ScotiaMcLeod Wealth Advisor, with some thoughts for investors outgrowing their mutual funds.



Mutual funds are a great starting point if you are an investor starting to save, as they give you access to professional management and diversification for a fee.

Unfortunately, they don’t generally give you a discount as your portfolio grows…so your fees increase with every dollar you add. If you put 500 dollars in a fund with a 2.5% management expense, you pay $12.50 a year…but if you have $500,000, the cost jumps to $12,500, yet you are receiving no more access to or advice from the manager than the beginning investor.



Fortunately, many alternatives exist for investors with growing portfolios…if you have $250,000 or more to invest, you may be able to save thousands of dollars.



Tune in tomorrow at 8:30, as I discuss options for growing portfolios.



Have you outgrown your mutual funds?



For a review your portfolio, or a complimentary copy of my CD, visit, 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 their prospectus before investing. Views expressed are those of the author, not Scotia Capital. ScotiaMcLeod is a division of Scotia Capital Inc, member CIPF.