Low MER Mutual Funds

[Mitsu3000gt]

I have to make a decision with some of my company matched RRSP, and mutual funds are the only thing they can auto-skim off my paycheck to make it nice and easy.

The managing bank sent me a list of Mutual Funds with (surprise) the MER not listed. I spot checked a bunch and they were all 2-3% haha.

I want a passive, low MER mutual fund. Any recommendations? I've started looking around myself, but I'm curious what other people are using.

[roopi]

Originally posted by Mitsu3000gt
I have to make a decision with some of my company matched RRSP, and mutual funds are the only thing they can auto-skim off my paycheck to make it nice and easy.

The managing bank sent me a list of Mutual Funds with (surprise) the MER not listed. I spot checked a bunch and they were all 2-3% haha.

I want a passive, low MER mutual fund. Any recommendations? I've started looking around myself, but I'm curious what other people are using.

Who is the managing bank? Do you have to select one of theirs or can you choose any fund you want?

[ryuen]

Canadian Couch Potato has a list of some good ones.

http://canadiancouchpotato.com/recommended-funds

[Mitsu3000gt]

Pretty sure I can pick any mutual fund I want. Managing bank is Scotia.

Thanks for the link ryuen, I'll take a look this evening.

[macman64]

I would recommend ETFs instead of mutual funds.

[roopi]

Originally posted by macman64
I would recommend ETFs instead of mutual funds.

If that is an option definately do this but he did state mutual funds only.

[Mitsu3000gt]

ETFs are the obvious choice, and I have them elsewhere in my portfolio, but they aren't a reasonable option for the company RRSP match with the way it's structured. I can pick mutual funds or stocks, and I want to diversify it a bit.

[ExtraSlow]

What's the exact wording? If you can pick individual stocks, you may be able to do ETFs, since they are bought and sold like stocks.

A lot of these company sponsored programs have a limited list of mutual funds, and those are often the "standard" funds that have the normal high MERs. Still, usually the company matching more than makes up for this drawback.

[Mitsu3000gt]

Originally posted by ExtraSlow
What's the exact wording? If you can pick individual stocks, you may be able to do ETFs, since they are bought and sold like stocks.

A lot of these company sponsored programs have a limited list of mutual funds, and those are often the "standard" funds that have the normal high MERs. Still, usually the company matching more than makes up for this drawback.

I can pick ETF's, but I have to pay trade fees every time the bank goes out and buys them on my behalf. I can't auto-buy them with my paycheck like I can company stock or mutual fund. So, they would wait until I had $5k or so, then go out and buy the ETF of my choice after charging me what I am sure is an absurd trade fee ($30-50). Compared to the other method, which buys the stock/mutual fund at the end of every month with what was skimmed from my paycheck and I don't pay trade fees.

I will confirm today if I can pick absolutely any mutual fund, or if it is in fact confined to that list. The list they sent me was just "recommendations" so hopefully it's not limited.

EDIT: Yes I can pick any mutual fund. Any recommendations?

[max_boost]

Everyone's making money but no one is sharing their picks haha an actively managed fund is gonna beat the index. I would like to know what funds the ballers are picking too lol

[Mitsu3000gt]

Originally posted by max_boost
Everyone's making money but no one is sharing their picks haha an actively managed fund is gonna beat the index. I would like to know what funds the ballers are picking too lol

Passive funds usually do better from what I can tell, I do not want an actively managed one :).

[roopi]

Well I only purchase 1 mutual fund because it is in my RSP and I can only choose mutual funds (similar to your situation). It is a RBC Canadian Dividend Fund. I know TD has a very similar fund as well. The RBC one has a MER of 1.76%.

You can view the fund details here.

http://funds.rbcgam.com/pdf/fund-pages/monthly/rbf266_e.pdf

The reason I chose this fund is because it is heavily weighted towards Canadian financials. I've been buying this on a weekly basis for the past 4 years and have zero complaints. I will continue buying this and feel like I never need to worry about it to check its performance. I used to buy the TD version of this previously and the only reason I changed was because of switching banks.

If you want something with a lower MER take a look at the RBC Canadian Index Fund. Again majority financials but not as high of a percentage as the Dividend Fund. MER is 0.72%.

I'm a huge fan of Canadian Financials in a RSP. Its something you can buy and forget about. If I add another fund to this account it will be heavily weighted in Canadian Energy.

Take a look here for an overview of the RBC offerings and the details on the RBC Canadian Index Fund:
http://fundinfo.rbcgam.com/mutual-funds/rbc-funds/overview/default.fs

[M.alex]

Originally posted by max_boost
Everyone's making money but no one is sharing their picks haha an actively managed fund is gonna beat the index. I would like to know what funds the ballers are picking too lol

Mawer Balanced Fund (MAW104). 20yr+ track record, stable returns (not terribly exciting but consistent), good drawdown protection methodologies and low MER.

I'm too lazy to trade on my own money so I just shove it into a balanced fund. There are sevaerl good ones, but Mawer is local and I've met with the portfolio managers. Another plus is the fact they didn't hire me several years ago - my compensation requirements were "insane" ( :rofl: ) - so internally I know they practice what they preach.