There are various investment options available to help you achieve your financial goals. Whatever investment you choose, it is important that the costs and how they affect the cost of the investment to understand. All mutual funds have the same scale. Affect the cost of certain funds, your return is more than others.
The less you pay for your investment, the greater the hold, so the cost of investing is something you should always try to minimize. Over time, minimizing costs have a significant and positive impact on the growth of your portfolio.
Each fund has certain costs. Included in the review of your portfolio of funds, these costs as part of the decision:
Management Expense Ratio (MER)
The MER is the management fees charged to operating expenses (or costs) and GST / HST to a fund each year, expressed as a percentage of the average fund net assets for that year. All funds have a MER.
The returns you earn as investors reflect performance data, reports after the fund’s MER is deducted. For example, if you earned your investment funds last year by 9% and MER of the Fund was 2%, the return would be 7% reported for this period.
A sales commission (load following) is sometimes a fee paid to a consultant for the Corporation for the sale of a fund for investors.
A no-load fund has no sales commission, if a fund is purchased or redeemed.
If you choose a front load funds, you and your adviser negotiate the rate charged to, typically ranging from 0% to 5% of the amount you invest. Mutual fund companies to deduct from the sale of the tax amount you invest and pay at your dealer.
With a load fund back-end, you do not pay a commission at the time of purchase. Instead, the Fund pays a commission to your business adviser to the company at the time of purchase. However, if you redeem your mutual funds earlier than the deadline, you will pay a redemption fee to the fund company.
Short-term trading fees
Investment funds that are intended for long-term investments typically require a fee when the units within a short period (eg 30 days) were purchased. The proceeds of this tax will go directly to the fund for the benefit of remaining shareholders. The tax is to discourage excessive trading and offset the costs involved. RBC Funds and PH & N Fund is suitable for short-term investments (such as money market funds) are exempt from this tax.