Mutual Fund Fees

Lower management fees for investors

We continually look for ways to help investors reach their investment goals. That's why we've reduced the maximum annual management fees on select series of 45 TD Mutual Funds.

Take a look at all changes in the press release. Advisors can login to see a full list of MER changes: Login

The advantage of investing with mutual funds

Mutual funds can offer a way to tap into the potential returns of equity and fixed-income markets and help you reach your longer-term savings goals, such as retirement. There are solutions to help meet the needs of all investor types, and low minimum investments make it easy to get started. And when you choose TD Mutual Funds, you benefit from the integrity and leadership of TD Asset Management Inc.

Expertise is built right into every TD Mutual Fund
Professional fund managers and analysts constantly monitor market conditions and make investment decisions on behalf of fund investors. Fund managers can overweight or underweight assets to help optimize performance. TD Mutual Funds can provide you with diversification within or across sectors, investment types and geographic markets. Active management may help reduce volatility of fund performance.

Management Expense Ratio — explained

Mutual fund costs are typically expressed as a Management Expense Ratio, or MER. The fund costs that make up the MER are not charged to investors directly. Rather, the MER is reflected in the net return of a fund.

MERs vary, depending on the type of fund and how actively managed it is. For example, index funds generally have very low MERs. That’s because their objective is simply to match a market index. Trying to outperform the index, however, requires the specialized expertise of a professional fund manager backed by a team of dedicated researchers and analysts.


The value behind the MER

mutual fund fees MER

Management fee, made up of:

Portfolio management fees — paid to the investment management firm

You can benefit from:

  • Potential to outperform an index
  • A more diversified portfolio than
    you could likely build on your own
  • Disciplined risk management
  • Research, investment selection
    and professional money management
 

Trailing commissions — paid to the mutual fund dealer servicing your account

You can benefit from:

  • Customer care
  • Ongoing personalized advice
    and service
  • Regular statements detailing transactions and performance

Operating costs — cover accounting, audit costs and record keeping

You can benefit from:

  • Confidence that your mutual fund is being managed responsibly
  • Regulatory oversight
  • Transparent governance
  • Accountability

Taxes — GST and QST or HST


Fee-Based Accounts

TD Asset Management's fee-based funds (F-Series) are some of the lowest-priced F-Series funds in Canada. The series offers a comprehensive line-up with fee-based solutions for various client needs.

Fee-based mutual funds provide greater fee transparency by clearly separating the fees you pay your Advisor for advice and services (the trailing commission) from the fees the fund charges. For example, when you purchase a fee based mutual fund, the fee for advice and service is disclosed up front and based on the assets in your account, as opposed to being embedded in the MER like a regular mutual fund.

Benefits of investing in fee-based mutual funds:

  • Transparent fee structure for advice and value-added services - the fee for advice and service is negotiated up front
  • Easy-to-understand fee structure - the transparency allows you to better understand what you're paying for
  • May be tax deductible - the fee for advice and service may be tax deductible when paid separately from the fee charged by the fund


Sales charges and short-term trading fee

Mutual fund sales charges, or commissions, are called loads. These may be paid to the advisor, dealer or mutual fund company, depending on the type of load (see below). For any given fund, you may be able to choose various combinations of loads and fees. Your advisor can help you select the option that works best for your current needs. In certain circumstances, a short-term trading fee may apply (see below).

No load

No sales charges associated with the fund.

Front-end load

Paid to your advisor at time of purchase for providing advice and facilitating sale.



Back-end load

Paid to the fund company at redemption
(when you sell the fund back to the fund company).

Short-term trading fee

May be applied if you switch or redeem a fund within 7 days of purchasing it (30 days for index funds); designed to encourage long-term investing.

Get the powerful potential of TD Mutual Funds working for you

To explore how mutual funds could enhance your portfolio’s performance and help you reach your
long-term investment goals, speak with your advisor today.