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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

Q: Fidelity ZERO Large Cap Index Fund (FNILX) Would this index fund be a buy in your opinion, or something else instead?

Thank you.

Read Answer Asked by Ross on May 11, 2022

Q: I inherited the following:McKenzie Strategic Income Fund;McKenzie Strategic Income Ser.A;Invesco Strategic Yield Fund;BMO Income ETF Portfolio;BMO Concentrated Global Balanced Fund.Are these suitable investments in the present rising rate,volatile environment and where applicable, are there ETF's
that mimic these funds?Thanks for your assistance in helping me sort these out. Maurice.

Read Answer Asked by maurice on May 05, 2022

Q: I have decided to move my investments from a portfolio manager to TD direct investing. I have a Cad and and Usd cash account and a tfsa. They have invested 50% of my money in mutual funds (mostly Dynamic Funds) and I'm tired of paying high fees with little or no active management. . They have told me they can transfer, in kind, the single stocks but must sell all the mutual funds before closing my account because they are F series. Does this sound right to you? Is there a way around this?

Read Answer Asked by Andrea on May 02, 2022

Q: Would like a current opinion on this mutual fund?
Is the fees worth the returns or would a global ETF perform better?
Greatly appreciate your opinion.

Read Answer Asked by Paul on April 11, 2022

Q: I am looking to simplify my non-registered investment portfolio for my retirement, which is now only 9 months away. I am looking to protect capital and create income. I am looking at one ETF and one fund as possible landing spots for my capital: XSP. And FID282.
Can you please compare and contrast these two funds for me? Are the different enough to warrant owning both? Is there anything else I should be considering?

Thanks in advance
DON

Read Answer Asked by Donald on April 08, 2022

Q: In my savings plan through work I have limited voices all TD Asset Management mutual funds very low cost because of a volume discount through the employer I have the following
CDN Index 53K
IMO shares 36K
CDN. one Index 24K
INTL Index 21K
US Index 18 K(was 40 K it I trimmed)
TD Money Market Fund 109 K
I can retire anytime in the next 1-3 years my question is would you reshuffle this in any way and also if rates go to 4-5 % typically what could I expect from that MMF Ö. Thanks

Read Answer Asked by Greg on April 08, 2022

Q: What is your impression of these Manulife Funds and in which order would you choose? MPS4697, MPS4619, MPS4953

Read Answer Asked by TG on April 01, 2022

Q: I own both MAWER New Canada-MAW107 (since 2004!!) and Mawer Global Smallcap-MAW150 (since 2011) in a taxable account. Both funds declared very large capital gain distributions in 2021, much more then I experienced in the last years.. Are the capital gains really from 2021 -not the best year for MAW150 ?

Iím probably dead wrong but is it possible that after many years of good performance (letís say 10 years), the mutual funds are required to distribute some capital gains, so that investors do not cling to them forever, and make CRA happy ?

Thank you.

Read Answer Asked by Denise on April 01, 2022

Q: This fund which was a great fund years ago will shortly be converted into a lower MER fund which I appreciate. However, this got me to look closer at recent performance which I don't think has been very good. I am considering switching it to something else. Can you recommend an ETF or another fund that would be a good replacement. We don't have a lot of foreign exposure other than this fund and a Mawer fund (MAW102) but we are otherwise very diversified in individual stocks.

Read Answer Asked by Earl on March 30, 2022

Q: Hi 5i Team, and with income tax season upon us, if a mutual fund company chooses at their convenience to consolidate their (Dividend) Fund A into their (Dividend) Fund B going forward, does it create a reportable taxable capital gain for the holders of Fund A? In this case, the statements show Fund A as a "redemption" (for the fund that is being closed at their convenience) and Fund B as a "purchase" (for the larger fund that is going forward), on the identical trade date (i.e., there is no order date and no later settlement date, but the redemption and purchase occur on the same calendar date as in a substitution of fund products). In this case Fund Company A was acquired by Fund Company B, and presumably the funds overlapped, and the mutual fund company chose to consolidate the two overlapping funds into one larger fund going forward . Since this was initiated at the convenience of the mutual fund company and with no action initiated on the part of the taxpayer, and essentially the product that the taxpayer is holding is unchanged (i.e, Dividend Fund A replaced with Dividend Fund B from the same mutual fund company), would this be a reportable capital gain, or otherwise the taxpayer within their right to choose not to report in the year 2021 taxation year and retain the ACB of Fund A and declare the capital gain when Fund B is sold? It does appear on the T5008 form issued by the brokerage. Thanks to all your Team from an appreciative member.

Read Answer Asked by Michael on March 28, 2022

Q: Hi 5i, I own some D-Serie funds in my BMO InvestorLine account. I was told that, by law, the D funds will not be allowed anymore in self-directed accounts and will be converted to F-series very soon. Do you -or your readers- know where this directive comes from? And will this conversion be tax-free? Thanks.

Read Answer Asked by Denise on March 02, 2022

Q: Hello,

What are your thoughts on the Canso Corporate Value Fund - Series F as a fixed income option?

Thank you,

Glen

Read Answer Asked by glen on February 22, 2022

Q: I have friends that have sold mutual funds and wondered why the final proceeds seem so much less than they expected based on recent monthly statement values (i.e. they've sold a day after the their last statement in an up market). Why do mutual funds valuations seem a bit contrived? Are there hidden fees deducted from the sale proceeds in general? If so, what % are they typically?

Read Answer Asked by DAVE on February 22, 2022

Q: For a mutual fund, do you think the CIBC balance index fund managed by Jacques Prevost is a good overall fund for a conservative investor? Reported returns of 6.7% for 5 and 10 years. Mer of 1.22%. I noted 25% allocation to financials. Itís in my wife portfolio and she was looking for advice. Any comments would be appreciated. Thank you!

Read Answer Asked by Pierre on February 18, 2022

Q: Hello 5i,
These three make up the fund portion of a senior's portfolio. All of these have a US focus. Can you suggest 1-2 ETF's that would compliment these three with more diversification and some balance. Nothing risky; 5-year horizon.

And should the TD mutual fund be replaced with an ETF with lower fees?

Thanks for your guidance.

Read Answer Asked by Robert on February 08, 2022

Q: Peter,

I had read that mutual funds could no longer charge DSC fees. I didn't realize that trailers were also being outlawed.

Were trailing fees a major cash cow for them or something smaller?

How do you envision the fund companies making up for the loss of fees?

Thank you

Paul

Read Answer Asked by paul on February 07, 2022