Mutual Funds

Asset allocation, risk, diversification and rebalancing. Pros/cons of hiring a financial advisor. Seeking advice on your portfolio?
biker
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Re: Mutual Funds

Post by biker »

Can one buy Mawer through TDW?
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poedin
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Re: Mutual Funds

Post by poedin »

biker wrote:Can one buy Mawer through TDW?
Yes. Minimum 5000, subsequent purchases 1000.
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Re: Mutual Funds

Post by Tango1 »

I am an Rbc direct investor now and my rrsp contains: ph&n balanced fund (series d) 50%), rbc cdn index (25%), RBC US EQUITY CLASS SERIES D (25%). My question is can I have a balanced fund and ETF'S within my rrsp or should I replace with 2 or 3 etf's (eg. XIC for Canadian market 0.05% MER.

Also have $25,000 in Tfsa and plan to switch to etf's...Canadian equity = VCN or XIC and US equity =VUN.

Any feedback offered is greatly appreciated.

Tks
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parvus
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Re: Mutual Funds

Post by parvus »

RBCDI now offers D-class funds from Mackenzie and Trimark.

If you're still interested in D-class funds, I'd look at the RBC O'Shaughnessy series. It's still a close heat for me between cheap mutual funds and index funds/or ETFs.

I've been doing some portfolio rebalancing recently, and ditched some high-cost mutual funds that did better than the index, for some RBC D funds that also did better than the index, but were also cheaper.

As to your larger question, you can hold anything you want in your RRSP (or TFSA). The chief concern is "diworsification." IOW, do your holdings amount to duplication.

Find a core fund that you're comfortable with, could be a balanced fund, could even be PH&N D, could be a global stock ETF and a Canadian bond ETF. Your choice. But be comfortable.

Then you can explore the more exotic spices for your investment palate.

Get the core right before you explore.
Last edited by parvus on 27 Mar 2014 21:27, edited 1 time in total.
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Shakespeare
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Re: Mutual Funds

Post by Shakespeare »

parvus wrote:RBCDI now offers D-class funds from Mackenzie and Trimark.
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Re: Mutual Funds

Post by AltaRed »

For a plodding but solid discount broker that won't offer Mawer funds (as far as I know), they seem to be leading the way (by a long shot) with D series from other suppliers. Is this only the beginning?
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parvus
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Re: Mutual Funds

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Let us pray.
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OhGreatGuru
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Re: Mutual Funds

Post by OhGreatGuru »

RBC Select Balanced is a portfolio fund, so it is actually quite diversified - it isn't just one mutual fund.

When RBC started it's Select portfolios I was pleased with them. The returns for the Select Balanced were equal to or better than RBC Balanced Fund, for a lower MER. But they have made a few changes to the prospectus since inception that I am not impressed with. The fund managers have greater discretion to vary the asset allocations than they originally did, so they are closer to being Tactical Asset Allocation Funds now. They have increased their US & International Equity content substantially. (In fact Select Balanced is actually classified as Global Neutral Balanced now, not CDN Neutral Balanced) I'm not keen on an overweight in foreign equity too close to retirement generally; or in this economic cycle right now.

One of the pitfalls of Portfolio funds is that the Fund company can hide some of its poor performers in a portfolio fund, and I think that is the case with some of the constituent funds of Select Balanced.

If you wish to stay with the convenience of your current bank and mutual funds, you could make your own "balanced" portfolio of some of the better RBC funds and Index funds for a lower overall MER.
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Re: Mutual Funds

Post by Tango1 »

[quote="If you wish to stay with the convenience of your current bank and mutual funds, you could make your own "balanced" portfolio of some of the better RBC funds and Index funds for a lower overall MER.[/quote]

Wow, tks for the info, very interesting. Yes I would like to make my own balanced fund....any suggestions as to what funds? Or should I switch to etf's?
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Re: Mutual Funds

Post by ig17 »

Tango1 wrote:Yes I would like to make my own balanced fund....any suggestions as to what funds?
http://canadiancouchpotato.com/model-portfolios/
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Re: Mutual Funds

Post by OhGreatGuru »

If you want to go total Couch Potato, RBC has:

CDN GOVT Bond Index Fund (MER 0.67);
CDN Index Fund (CDN Equity) (MER 0.72);
US Index Currency Neutral Fund (MER 0.72)
International Index Currency Neutral Fund (MER .0.71)

These MERs are higher than you can get elsewhere, such as TD e-Funds, but they have gradually come down from their starting point of 0.95 when they first opened.

There is no point in buying RBC CDN Equity Fund, because it is a closet indexer. Just buy the index fund at lower MER.

If you want to add a diversified CDN equity fund with a different investment style than the index, RBC O'Shaughnessey All-Canadian Equity.
RBC Dividend Fund used to be among the top rated dividend funds before dividend funds were combined with income trusts into one category - Equity Income Funds. It is still a very solid, Large-cap, conservative equity fund. It's holdings will already be present in the Index fund though
RBC CDN Equity Income Fund has been performing very well and receiving good ratings. It used to be Diversified Income Trust Fund.
RBC's foreign funds are generally not that great, so I would stay with the index funds.
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