The HST and Your Investments, part 2

If you caught my show on saturday, you heard me speak on the issue of
mutual fund companies protesting about the impact of the new
Harmonized Sales Tax on fund investors. This issue is valid, but I
think it is a red herring. The fund companies kick up a huge fuss
about the impact of the tax on investors' savings, but do nothing
about the fact that an investor could conceivably pay hundreds of
thousands of dollars in management fees over a lifetime. The HST only
increases the already dramatic impact of the Canadian mutual fund
company management expenses, which are the highest in the world. I
doubt we will see any great movement to see fees come down due to the
tax. It really does support my stance that investors with larger
portfolios should explore their options. Less expensive and more
customized alternatives exist if you have outgrown your mutual funds.