Grow your savings faster
It's hard to make money on your investments if your mutual fund company is skimming too much off the top. Mutual fund fees, which are used to pay fund managers and financial advisers, average about 2.5 per cent in Canada, and they are taken out of the fund regardless of how they perform. That means if the investments in your fund gain by 6.5 per cent a year, you'll only get about a four per cent annual return after fees.If you switch to a lower-cost fund, such as Mawer Canadian Balanced Retirement Savings Fund, McLean Budden Balanced Growth Fund, or Phillips, Hager & North Monthly Income Fund, that fee could drop to as low as one per cent. On a $100,000 portfolio, given equivalent performance of the underlying investments, you could save as much as $125 in fees a month, which adds up to $1,500 each year.
Save $750 a month
