Investing

TD mutual funds advice needed

  • Last Updated:
  • Jul 9th, 2012 4:16 pm
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[OP]
Sr. Member
Nov 27, 2009
931 posts
279 upvotes

TD mutual funds advice needed

TD is my main bank at which I have their select service account (locked up $5000 already). Now I still have around $20,000 left and I am thinking of purchasing TD mutual funds.

As a first-time fund investor with zero finance background, I do need some advice before talking to a TD FA.

My goals with $20,000 are:
1. No locked up
2. $1,000 to $1,500 annual return (is it too high for low risk funds?)
3. Tax free if possible
4. No hidden fees or penalty for withdrawal/transfer

My questions for you guys are:
1. When would be a good timing for entrance?
It looks like June (a bit before Canada day) was a good time for purchasing mutual funds from the charts below.

2. Low risk vs high risk funds
TD Comfort Conservative Inc Port-I (low risk)
[IMG]http://img688.imageshack.us/img688/6544/tdcon.png[/IMG]

TD Health Sciences
[IMG]http://img849.imageshack.us/img849/9689/tdhealth.png[/IMG]

Those are two funds that I am considering right now. Please educate me if there is a better one that suits my goals.
2 replies
Deal Addict
Dec 11, 2007
1826 posts
375 upvotes
Markham
just from those 2 charts alone i'd say you're probably falling victim to the good ol looking thru the rear view mirror trap, of buying funds that have had good performance, thinking past performance dictates future performance.

assuming you arent looking to get in/out and will invest for a moderate length of time (few years):
if i were in your position, with limited knowledge, i would just pick an TSX index fund (or index ETF if you like), split the 20k into 10 chunks (2k each), and buy 1 chunk per month for the next 10 months.

if that's too slow for you, because you have additional income coming in you'll also want to invest, then feel free to split it up into less chunks, like 6 chunks (3k each), and buy 1 chunk per month for 6 months
Deal Addict
Jul 23, 2007
3807 posts
1601 upvotes
Cerenity wrote:
Jul 9th, 2012 2:57 pm
just from those 2 charts alone i'd say you're probably falling victim to the good ol looking thru the rear view mirror trap, of buying funds that have had good performance, thinking past performance dictates future performance.
+1 I think you're performance chasing.

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