Switching Mutual Fund Companies

[TrevorK]

I'm going to buy some Chou mutual funds, which of course CIBC doesn't sell.

How do I go about selling my mutual funds with CIBC, and then buying these ones? Is it as simple as tell CIBC I want to sell, them once the $$ goes into my bank account, just write a cheque to the broker selling me the Chou funds? And all I need to do is give my accountant the two receipts and he'll deal with it all?

I just don't want to fuck myself for tax time....

[Weapon_R]

Talk to your accountant first. Any gains you make will probably be taxable, and you need to know if it's worthwhile or not.

Then sell your CIBC mutual funds, and buy the other ones.

[EvilNeon]

Not probably. The gains WILL be taxable, furthermore you may have backend loaded funds which means you will pay a percentage of the funds value to the fund company / broker at the time of sale.

I'm assuming you are speaking of non-registered funds as well. If they are registered (RRSP's) that is different entirely.

[TrevorK]

Oh - sorry, these are all registered funds.

When I was younger (18-19) I got sucked into buying the CIBC Balanced Fund. And now I realize what a piece of shit it is, and want to switch to a well managed one.

Any advice on this situation knowing they are registered (RRSP)?

[EvilNeon]

Yeah, that's more difficult. You will need to sell the funds, but retain the cash in an account (or in T-Bills or a money market fund) that is still registered. Then you have to fill out a bunch of paperwork between institutions to have the money transferred. CIBC will be able to provide you with the forms required.

P.S. All mutual funds are shit. There has, in all of mutual fund history, not been one single fund that had out-performed any of the indexes in which the majority of it's holdings reside for more than six years.

Go to Chapters, or the library and get a book called "A Random Walk Down Wall Street" it talks all about it, and tells you how you can verify the data yourself. You are MUCH better off buying ADR's and index funds (such as those offered by Vanguard). They have no loads and the management fees are often around .25%.

Take a look at all the mutual funds you can find. There are no equity based funds that have been around longer than about ten years. Know why? Because when they start to perform poorly in comparison to the indexes the fund companies switch people to 'new improved, but different named' funds to avoid looking bad.

Mutual fund companies are like lawyers, even if you lose they still get paid. Fucking weasels, all of them.

[Speed_RaSiR]

Mutual Funds are not the wisest way to invest nowdays.

Property is where its at.

[sml]

Originally posted by Speed_RaSiR
Mutual Funds are not the wisest way to invest nowdays.

Property is where its at.

Old news... Too late... GOOOLD and Oil/Gas is where it's at...