Mutual Fund - good or bad

[Watcher]

I have a bunch of cash tied up in an AGF mutual fund: Canadian Agressive Growth. And, since june 2002 it has averaged +18% per anum.

Is this good or bad? Should I keep it or heap it?

[crazyning]

I'd keep it.

18% return is really good, for me at least. I've just purchased a few mutual funds, and if I get 10% return, I would be happy. Tell us more about this AGF Mutual Fund. Where do I buy?

[Watcher]

AGF shows up on a google search. I'm not sure if I'm spamming if I post the link, but I'll give you a hint: www._ _ _.com

[max_boost]

Well being a Canadian fund, you know the returns are tied to the Energy sector. If you think Energy still has a lot of pull, keep it. If you think it's going to crash, then sell it.

[Celica TVS3]

I'm personally not a huge fan of mutual funds but they do serve a purpose, especially for international diversification. How many of us follow international markets closely enough to pick foreign stocks ourselves? My view is that if you think oil is peaking you'll have to look for equity opportunities abroad and if you're investing abroad your best bet is to rely on the advice of experienced portfolio managers via mutual funds.

If you're looking for international diversification the AGF International Advisor (AGFIA) team (John Arnold and Rory Flynn) have been knocking the ball out of the park with their global/international portfolios. If you're looking for international diversification check out AGF International Stock, AGF Global Perspective. If you're sticking with Canada, AGF Dividend Income has performed pretty well; it's been blowing away the BMO Dividend fund lately (which is also a good fund).

[Shaolin]

I have mutual funds.. I just make monthly contributions and leave it at that.. you just follow it and maybe once a quarter change how much you contribute to each fund or buy new funds, etc..

It's useful if you're lazy and not into playing in the stock market buying one stock at a time..

[Watcher]

Investing abroad.....isn't that how we get the canadian dollar to cut the throats of canadians?

[pinoyhero]

Originally posted by max_boost
Well being a Canadian fund, you know the returns are tied to the Energy sector. If you think Energy still has a lot of pull, keep it. If you think it's going to crash, then sell it.

Well said, before he does this though I suggest looking into the mut fund holdings (which im sure you're right about given the growth) just to make sure.

[Celica TVS3]

Originally posted by Watcher
Investing abroad.....isn't that how we get the canadian dollar to cut the throats of canadians?

Explain?

If you're saying that retail Canadian investors investing money outside of Canada is somehow going to cause our dollar to sharply fall or rise you're mistaken. Firstly, the retail capital markets account for only a small % of international trade. Secondly, our investments abroad are offset by foriegn investment.

[ShOwOfF]

18%/yr is phenomenal. I wouldn't expect the AGF Can Agg Growth fund to return quite the same for 2006 though. Most Canadian Indexed type funds have taken a slight hit over the past few months. You should still see a positive return, but not quite the 18% you've had previous years.

[djayz]

agf funds have a very good year-over-year return for long term holders. there is way less turnover inside of agf mutual funds.

if your in it for the long run and can continue getting over 15% a year keep it thats an exceptional rate. If you feel your money does you good somewhere else by all means take it out.

[Watcher]

Originally posted by Celica TVS3


Explain?

If you're saying that retail Canadian investors investing money outside of Canada is somehow going to cause our dollar to sharply fall or rise you're mistaken. Firstly, the retail capital markets account for only a small % of international trade. Secondly, our investments abroad are offset by foriegn investment.

Actually, I'm more concerned that investing in international markets will weaken canada's competitiveness much like stripping all the profits away from a business can weaken its ability to stay competitive.

[Watcher]

Originally posted by ShOwOfF
18%/yr is phenomenal. I wouldn't expect the AGF Can Agg Growth fund to return quite the same for 2006 though. Most Canadian Indexed type funds have taken a slight hit over the past few months. You should still see a positive return, but not quite the 18% you've had previous years.

Originally posted by djayz
agf funds have a very good year-over-year return for long term holders. there is way less turnover inside of agf mutual funds.

if your in it for the long run and can continue getting over 15% a year keep it thats an exceptional rate. If you feel your money does you good somewhere else by all means take it out.

I'm thinking of pulling out 10 grand to pay off a tax bill,

but if I choose not to - I could use a line of credit to pay off the taxes.

[pinoyhero]

^Really depends what you line of credit rate will be. Keep in mind that you pay cap gains on the mut fund see the example...

Mut fund - 10% (minus 40%*.5)= net gain of 8%
LOC - 8.5%

In this case although the LOC is at 8.5% it would be better to pull out fo the mut fund.

[Rav4Guy]

Like others have said already... the fund is tied to the energy sector. at 18% return since 2002... (assuming you've had it in there since 2002)... I'd consider redeeming it. Check if there's any DSC fees associated with it... I'll just assume it's a FE fund.