What to do with TD Resource Fund?
What to do with TD Resource Fund?
Between my TFSA and RRSP's I have invested about $13,000 in the TD Resource Fund over the last few years. It currently has a market value of about $10,000 so I've lost about $3000. I've lowered my PPP monthly contributions to this fund to the minimum of $50/month. What should I do with this fund...hold, or cut my losses and transfer the money to a better performing fund?
Re: What to do with TD Resource Fund?
I can't tell you what to do with your TD Resource fund but the broad based Canadian Index ETF's have a combined sector weighing of about a third of the portfolio allocated to energy and materials. That's way more than enough for me. I own VCN.
Re: What to do with TD Resource Fund?
Since you asked for guidance: I would cut my losses.
This fund is very painful on the by the numbers I have just looked over... 237% turnover rate and high MER will not be recouped very soon in order to get back above the line on your investment.
http://quote.morningstar.ca/quicktakes/ ... F0CAN05N4S
This fund is very painful on the by the numbers I have just looked over... 237% turnover rate and high MER will not be recouped very soon in order to get back above the line on your investment.
http://quote.morningstar.ca/quicktakes/ ... F0CAN05N4S
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Re: What to do with TD Resource Fund?
How does this fund fit into your overall asset allocation? What was the investment thesis behind the original purchase and has anything changed other than the price drop that has changed your opinion on this fund in particular and how it fits into your asset allocation in general?
Low cost and as broad a diversification across the asset class is generally the best and recommended approach.
A question to ask yourself, how will you know in advance what will be a better performing fund? That's the toughest question and IMHO the main reason to purchase a broad-based index fund like VCN or something equivalent.
Low cost and as broad a diversification across the asset class is generally the best and recommended approach.
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Re: What to do with TD Resource Fund?
I agree with P_I. No one knows in advance what any market will do, never mind how any one individual sector will perform in the index. It is a mug's game.
It has been a painful 2+ years in the commodity sector though recently some base metals provided a bump. Will it come back? Yes to some degree. but will it be 6 months, 1 year, or 2 more years? Will it take a good 5 more years? Will a NAFTA war with the US fatally wound one or more of our sectors, or industries in a sector? I wouldn't bet on anything right now.
Personally, I would take my losses, and if you are not a stock picker, then simply purchase a broad based low cost ETF and let it ride.
It has been a painful 2+ years in the commodity sector though recently some base metals provided a bump. Will it come back? Yes to some degree. but will it be 6 months, 1 year, or 2 more years? Will it take a good 5 more years? Will a NAFTA war with the US fatally wound one or more of our sectors, or industries in a sector? I wouldn't bet on anything right now.
Personally, I would take my losses, and if you are not a stock picker, then simply purchase a broad based low cost ETF and let it ride.
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