December 10, 2008

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

Falling equity prices are tough on everyone, but mutual fund investors are hit especially hard. Good markets or bad, Canadians pay the highest fund management fees in the world, and this is always a problem. When mutual funds are being hit by redemptions which most funds are right now, they are forced to sell their holdings to pay out investors, and often to cover their fees. The end result is that many funds are being forced to sell regardless of what the manager likes or dislikes. This impacts both returns and taxation. In fact many fund investors may end up with tax bills on their funds even though the funds are down.

The time has come to ask, “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.