Tag 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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What Are Segregated Funds, And Are They Worth Investing In?

Last update on April 6, 2015.

House on fire


In analyzing a potential investment, only two qualities ultimately matter. The two qualities are expected returns, and risk. Given the same expected returns, investors prefer investments with lower risk. Given the same risk, investors prefer investments with higher expected returns.

Numerous financial products and armies of investment professionals are devoted to the pursuit of maximizing expected returns while minimizing risk. Unfortunately, there is almost always a tradeoff between the two. . An investment opportunity that offers higher expected returns almost always comes with higher risks. For example, stocks have historically offered higher returns than bonds, but they’ve also come with ...

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2014 MoneyGeek Portfolios In Review

Last update on Jan. 5, 2015.



2014 was both a great year and a poor year for MoneyGeek’s portfolios.

For those of you who are new, we offer several model portfolios through our paid subscriptions. These model portfolios come in two flavours - regular and premium. Regular portfolios primarily consist of Exchange Traded Funds (ETFs), while premium portfolios consist of individual stocks. Because ETFs contain hundreds of individual stocks, regular portfolios are less risky than premium portfolios. To learn more about ETFs, please read our free book

In this article, I’ll summarize how MoneyGeek’s portfolios did in 2014 in comparison to our competitors. 

Performance ...

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What You Need To Know About Transferring Money From Your Financial Advisor

Last update on Aug. 25, 2014.

Transfer Money


Jin's Note: In this previous article, Luke explained how much financial advisors really cost, and how to determine if you're getting your money's worth with one. In the subsequent article, he explained what deferred sales charges were, and when it made sense to leave the financial advisor. In this article, he will explain what you need to know if you want to start the process of moving funds from your advisor to a discount brokerage named Questrade.


Transferring Registered Accounts

Transferring registered accounts have to be done properly, so we’re going to cover this topic ...

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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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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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Is Your Financial Advisor Deceiving You?

Last update on June 5, 2014.


Imagine that you were traveling somewhere in Asia, and you went shopping in a flea market. There, you come across a pair of Beats headphones on sale for only $70. The same model goes for $190 in Canada.

"Sweet!", you say to yourself. "I love Asia". You purchase the headphones and head back to your hotel room.

Once you're back, you try your new headphones on. But you notice that something's not quite right. The sound isn't as crisp as you would have expected from a Beats headphone. The material seems to irritate your skin as ...

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Review Of An Actual Investors Group Portfolio

Last update on Jan. 10, 2015.

Investors Group Logo: Displayed under creative commons license


A couple of months ago, a long time Investors Group client emailed me what they had him invested in. What I saw appalled me. Here's what his portfolio looked like:

Investors Income Plus Portfolio A #00292
Investors Real Property Fund A #00286
Investors Canadian High Yield Income Fund Series A DSC #00922
Investors Global Bond Fund Series A DSC #00916
IG Mackenzie Income Fund Series A DSC #00931
Investors Dividend Fund A #00283
IG FI Canadian Allocation Fund A #00349
Investors Global Fund A #00289
Investors Greater China Fund A #00565
IG Mackenzie Emerging Markets Class A ...

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Short Course On Investments Episode 9: Life Insurance

Last update on Feb. 27, 2014.

In the Short Course On Investments, you will learn the basics of investing through simple everyday language. The course covers the same material as The Short Book On Investments.

In Episode 9, I talk about life insurance, which in some ways, is really an investment.




Hi, my name is Jin Choi, and I’m the founder of MoneyGeek. Welcome to the 9th episode of this short course on investments.

Today, we’re going to talk about life insurance as an investment.

There are many types of life insurance out there, but you can broadly divide them into two categories ...

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The Real Reason Why Mutual Funds Underperform

Last update on Feb. 18, 2014.

Big ship stranded

The bigger the ship, the slower they turn. This phenomenon partly explains why mutual funds underperform.


"My mutual fund returned 15% last year. That has to be higher than normal, no?"

One of my readers asked me this question recently, to which I told him that actually, it's not that impressive.

If you've been following the financial news closely, you'll have known that the stock market, especially the U.S. stock market, especially in terms of Canadian dollars, had a gangbuster year.

If you had half of your money in a U.S. stock ETF, and ...

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