Loan Articles

Mutual funds are among the most popular personal investment tools in Canada, as they are offered by all of the country’s “big five” banks - the Bank of Nova Scotia, Bank of Montreal, Royal Bank of Canada, Canadian Imperial Bank of Commerce, and the Toronto Dominion Bank.

With Bank of Nova Scotia, mutual funds represent an easy and affordable way for their clients to participate in the growing markets and economies around the world. In a nutshell, a mutual fund pools the resources of a group of investors into a single fund, managed on their behalf by a fund manager. Each fund can hold a number of different individual investment tools, such as stocks, bonds, and treasury bills. The so-called balanced mutual funds hold all of these investment solutions, enabling the individual investor to access a diversified basket of securities with just a single investment. For all their diversification and advantages, mutual funds sometimes present certain risks to the investors. The investment advisors of Bank of Nova Scotia offer their help to that clients so that they probe into a fund's holdings to ensure that it is not focused on risky investments.

The mutual funds of the Bank of Montreal, commonly known as BMO, fall into two groups - security funds such as BMO T-Bill Fund, BMO Money Market Fund, BMO Canadian Money Market Fund and BMO Premium Money Market Fund. With regard to income funds, they can be BMO Short-Term Income Class, BMO Mortgage and Short-Term Income Fund, BMO Bond Fund, BMO World Bond Fund, BMO Monthly Income Fund, BMO Diversified Income Fund and BMO Global Monthly Income Fund. The management expense ratio of the security funds ranges between 0.41 and 1.12 per cent and that of the income funds – 1.45-2.12 per cent.

The asset management business of the Royal Bank of Canada offers a comprehensive set of mutual funds, which fall into two main categories: money market funds and income funds. The first category covers RBC Canadian T-Bill Fund, RBC Canadian Money Market Fund, RBC Premium Money Market Fund, RBC $U.S. Money Market Fund and RBC Premium $U.S. Money Market Fund. Income funds include RBC Canadian Short-Term Income Fund, RBC Bond Fund, RBC Advisor Canadian Bond Fund, RBC Canadian Bond Index Fund, RBC Monthly Income Fund, RBC $U.S. Income Fund, RBC Global Bond Fund, RBC Global Corporate Bond Fund and RBC Global High Yield Fund.

The financial experts of the Canadian Imperial Bank of Commerce help the bank’s clients determine the best investment solutions to meet their financial goals. The savings funds of CIBC allow their costumers to invest in low-risk money market tools such as treasury bonds, and they are accessible at any time, while the income funds are for clients of CIBC who want to see their income and wealth growing in the long run. Some income funds are low-risk, while others are medium-risk investments. Finally, Canadian Imperial Bank of Commerce growth funds enable the bank’s clients to generate capital growth through investing in stocks from many different companies.

The family of the Toronto Dominion Bank Group offers more than sixty strong mutual funds, which can be purchased individually or through TD Comfort Portfolios – the professional portfolio manager of TD bank. In addition, the investment advisors of Toronto Dominion Bank have developed the Pre-Authorized Purchase Plan which is a convenient and affordable way to build one’s savings. The bank’s clients can start with as little as twenty-five dollars per fund on a regular basis, and this amount can be automatically transferred to their TD mutual fund account.