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Best Mutual Funds? TD e-Series?

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  • Oct 17th, 2010 5:29 pm
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Jan 25, 2007
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Best Mutual Funds? TD e-Series?

I want to open mutual fund accounts for both my TFSA and RRSP, about 10K each, but I am not sure which one. Currently they are sitting in ING savings accounts because I thought I would need the money sooner, but now I just need it to grow (with relatively little risk) for about 5 years. I was looking at the TD e-series, but I am not sure which to invest in? Or should I just invest in bank stocks myself (I have accounts with Questrade)? I will also be contributing about $700 per month to the RRSP one.
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Sep 15, 2008
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CSIFan29 wrote:
Oct 9th, 2010 1:46 pm
I want to open mutual fund accounts for both my TFSA and RRSP, about 10K each, but I am not sure which one. Currently they are sitting in ING savings accounts because I thought I would need the money sooner, but now I just need it to grow (with relatively little risk) for about 5 years. I was looking at the TD e-series, but I am not sure which to invest in? Or should I just invest in bank stocks myself (I have accounts with Questrade)? I will also be contributing about $700 per month to the RRSP one.
Forum rules state that we can't give any stock tips, but some of the prevailing strategies currently include:
  • Passive index investing through ETFs
  • Depending on how much you have, seek the advise of a professional investment advisor


There are a number of blogs and websites out there which can help you decide on what is best. Off the top of my head, look for things written by Canadian Capitalist or Million Dollar Journey. One technique I have seen some friends try is to purchase the equities or funds that are the highest percentage in a given mutual fund. This may work, or may not, since mutual funds are designed to have some portions balance out the others when markets go a certain direction. For example, if a mutual fund has 40% in XYZ, and 10% in each of ABC, DEF, GHI, JKL, MNO, STU, if XYZ drops, the other 6 equities would theoretically smooth out the drop in the fund value. That's why we pay mutual fund managers: to make sure that the overall value of a fund doesn't drop.

It also depends on what you want to do. Do you want capital growth, or an income stream? I have two portfolios: one for growth, one for income. The growth one contains value stocks that I've purchased when everyone else was selling (i.e., purchasing on the "downswing"). Over time these shares will grow, so I'll regain any losses over time, even though in the short term I am still down 4%. My income portfolio is composed of high yield stocks, income trusts, ETFs and REITs: anything with a yield of > 8%. As long as the shares in my income portfolio keep paying dividends, I'm not concerned with what the share value does. That said, my income portfolio has lost about 8% on paper, but I've already gained about 15% in income via dividends, so it balances out. These things all take research.

You may want to look at one of the couch potato portfolios. You can search for them online.

Good luck!
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Dec 10, 2008
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Do look into TD mutual funds, they did not disappoint me so far.

Browse TD site or globe and mail site and look for anything that has balanced in the title. The more governments print money, the better these "balanced" funds will perform.
Newbie
Jun 2, 2007
63 posts
Toronto
Could you give a quick break down on the benefits of registered accounts? I am living outside of Canada and plan to open a TD e Series account. Fact is I am a P.R (citizenship pending), but working for a NonCanadian firm out side of Canada and already paying taxes to the local authorities.

I just need a bit of clarification.
Newbie
Feb 24, 2010
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Toronto
I plan on starting an e-series RRSP very shortly. The only thing I dislike about it is the minimum investment requirements per index fund.
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Apr 8, 2010
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Harps wrote:
Oct 10th, 2010 2:45 pm
I plan on starting an e-series RRSP very shortly. The only thing I dislike about it is the minimum investment requirements per index fund.

You can't scrounge or save up $100 to make a purchase?
Newbie
Feb 24, 2010
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Toronto
Anathem wrote:
Oct 10th, 2010 4:04 pm
You can't scrounge or save up $100 to make a purchase?

It's not that, but once I set up my fund there is a $25 minimum per fund. So if, for example, I want to invest 10% of my investment in the U.S. index, I need to contribute at least $250 iat a time to reach the $25 minimum. Is this not right? I don't know if I'm being clear.
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May 30, 2005
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Harps wrote:
Oct 10th, 2010 4:56 pm
It's not that, but once I set up my fund there is a $25 minimum per fund. So if, for example, I want to invest 10% of my investment in the U.S. index, I need to contribute at least $250 iat a time to reach the $25 minimum. Is this not right? I don't know if I'm being clear.

So you're saying you want each of your contributions to be split up % according to your portfolio.

I don't think there's anything you can do here, except contribute less often. ie. if you normally put $100/mo. do $300 every three months. Or don't diverge your portfolio so much.
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Apr 8, 2010
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Harps wrote:
Oct 10th, 2010 4:56 pm
It's not that, but once I set up my fund there is a $25 minimum per fund. So if, for example, I want to invest 10% of my investment in the U.S. index, I need to contribute at least $250 iat a time to reach the $25 minimum. Is this not right? I don't know if I'm being clear.
Well lets be clear its a $25 minimum per fund if you're on a pre-authorized purchase plan, otherwise its a $100 minimum. If you can't commit to $250 a month or stagger the $250 over the entire month then you should just buy funds in $100 increments when you have the money and balance out your ratios over a longer term (i.e. buy your Canadian equities, then buy your US equities when you have money saved up again).
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Dec 23, 2005
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TD? Can you get some of your money out without fees? What about ING streetwise?
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Sep 26, 2007
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tasamy wrote:
Oct 10th, 2010 9:56 pm
TD? Can you get some of your money out without fees? What about ING streetwise?

yes, technically you can get some of your money out without paying any fees.* i would generalize that with all mutual funds.*

*assumes you know all the little details and assuming you do not regard MERs as fees.
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"With TD you can get your money out except with heavy fees!"

For less than 100k accounts:
http://www.tdwaterhouse.ca/trading/ascs.jsp

Partial transfer fee $135.00

Wire Payments - Outgoing:
$10,000 or less $30.00 CDN
$10,001 - $50,000 $50.00 CDN
More than $50,000 $80.00 CDN
U.S. dollar wire and fee in CDN equivalent Foreign bank charges may apply

REGISTERED ACCOUNTS

RSP/RIF/LOCKED-IN PLANS(LIRA, LRIF, LIF, PRIF)
Annual administration fee $100.00

Do not tell me put your unused money in a savings account with 1% while Ally gives 2% (double)..

An example:
Assume that I have sent $50,000 to my TD Waterhouse/E-Series account from RBC and then I want to return half of the money back, How much should I pay?
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Sep 26, 2007
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i think you are slightly confused... or maybe i am :lol:

are you talking about taking your money out of a mutual fund or out of your td waterhouse account?

i have a rbc account and the fees are very similar.
say i had 20 bucks cash in my investing account and wanted to move it to my rbc chequeing account, i could do an online transfer there would be no fees for making this transaction.

the wired payment stuff is if you want to wire that money to another account... say like an offshore account or something.

yes the rrsp accounts do charge a fee for withdrawals.

i would starve with 2% interest... i'd rather make a payment to my visa debt (12%) then invest for 2%.
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tasamy wrote:
Oct 11th, 2010 1:47 am
Assume that I have sent $50,000 to my TD Waterhouse/E-Series account from RBC and then I want to return half of the money back, How much should I pay?

you didn't really indicate how the money was invested... assuming it's still in cash couldn't you just transfer it to your TD chequeing account for free. then transfer that to your rbc account yourself cheaply?
you could do a wire transfer but unless you needed that money in the next hour for something i don't see why you would.
[OP]
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What are the fees on the RSP and TFSA eSeries accounts? I can't find them online, only the MERs.
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