Category archives: Mutual Funds

Is Your Mutual Fund A Closet Index? Because It Matters.

Last update on May 25, 2015.



We can divide most financial advisors into two camps, depending on their beliefs about mutual funds and Exchange Traded Funds (ETFs). If you seek advice from a financial advisor, you could receive a wide range of advice depending on which camp the advisor belongs to.


Mutual Funds vs. ETFs

I explain what mutual funds and ETFs are in my free book, but let me briefly state the main difference between the two.

Both mutual funds and ETFs are pools of investors’ monies. In both cases, the money is used to invest in different financial securities (a ‘security’ is ...

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Dealing With Mutual Fund Deferred Sales Charges

Last update on Aug. 14, 2014.


In the previous article, we discussed the different types of mutual fund fees and how you can find out about such fees. In this article, we’re going to explore what you should consider if you do have mutual funds with a DSC penalty, but want to switch out of them.

First however, a quick note on how DSC schedules work.


How DSC schedules work

Mutual funds are typically structured as a unit trust. All this means is that when you buy a mutual fund, you’re buying units of that mutual fund trust. The trust in turn owns all ...

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Understanding The Mutual Fund Industry: Advisors and Fees

Last update on Aug. 11, 2014.

 Financial advisors


The mutual fund industry in general has taken a lot of heat over the past decade in regards to fees. As a result, the financial services industry in general is turning more towards an advice-based platform. Many companies are actively encouraging new and emerging salespeople to offer broader financial ‘advice’ instead of simply trying to sell mutual funds.

The introduction of ETF’s into the Canadian marketplace in the 1990’s was the best thing to ever happen to the investing public.  The competitive pressures created with such a low-cost alternative have fueled countless debates surrounding fees. It is forcing ...

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Beware Of New Mutual Funds

Last update on June 16, 2014.


Some months ago, a reader sent me the performances of two funds, and wanted to know what I thought about them.

On surface, both funds had eye catching numbers. The most popular measure of risk adjusted returns is called the Sharpe ratio, which is roughly the ratio of past returns to risk. One fund had a Sharpe ratio of 1.4, while the other had a ratio of 2.3. Both numbers were way above the Sharpe ratios of the U.S. stock markets during their respective time periods. In other words, both funds had outperformed the U.S ...

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