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Mutual Funds for Self-Directed Investors
What are Mutual Funds?
A mutual fund is a pool consisting of diverse, pre-selected securities, which are managed by a professional fund manager. Diversification is one of the reasons self-directed investors choose mutual funds as part of their investment strategy.
TD offers a wide range of low-cost mutual funds designed for self-directed investors. Be sure to understand the associated fees and the impact on your returns.
As of June 1, 2022, TD Direct Investing will only offer mutual funds without trailer fees for purchase.
Benefits of investing in Mutual Funds
Things to consider
Mutual funds are a collection of individual stocks and other assets, so its value is tied directly to the rise and fall of the market. Therefore, there is a risk that your investment will go down in value. In addition, there are management fees associated with mutual funds, which will affect the overall performance of the fund. Remember to always take the time to do detailed research before making any investment.
Are Mutual Funds right for me?
Investing in mutual funds depends a lot on where you are in life—have you been investing for a while or starting out? How much time and money do you have? A great thing about mutual funds is they can get you into the market without having to pick stocks and pay transaction fees.
Other reasons include:
- Buy into multiple industry sectors
- No need to constantly monitor the markets
- Setting up an automated plan to invest each week or month
Types of Mutual Funds
With the self-directed investor in mind, TD Direct Investing offers a full range of professionally-managed funds and portfolios across all asset classes.
Discover more about Mutual Funds
When you buy a mutual fund, you are essentially pooling your money with other investors together to invest. This pool of money is managed by a professional money manager. Each shareholder of this pool of money participates proportionally in the gains or losses of the fund. Mutual funds may invest in a variety of different types of investments, with stocks and bonds being the most common.
Self-directed investors could hold a variety of mutual funds across industries or sectors as part of their diversification strategy. Mutual funds come in all shapes and sizes, some funds are all-in-one and offer diversification amongst all types of sectors and investments, while others are more niche and offer exposure to a specific sector, such as technology. Regardless, there’s a large range of options to choose from.
An index fund is a mutual fund that contains certain investments that mirror those within a particular market index.
Instead of trying to beat the market, index funds aim to match it.
While a portfolio manager usually picks the securities included, they will be less involved day-to-day. This is considered "passive fund management."
A mutual fund is run by a portfolio manager and their team who are involved daily ensuring the fund is managed to meet its strategic objectives.
A mutual fund’s value can rise and fall with the market, so it comes with a degree of volatility and risk. There are also fees and taxes associated with mutual funds, which can impact returns.
Whereas a GIC (Guaranteed Investment Certificate) offers a more guaranteed return, backed by the government of Canada. However, with less risk, comes less reward potential. The rate you receive on a GIC may differ based on many factors. Contact your financial institution to find out more information.
Mutual Fund pricing: clear and simple
It's the service, support, and overall experience of investing with us that defines the value for you.
What you get:
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Quotes
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Analysts' Choice Funds list
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Comparison and screener tools
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Morningstar commentary
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Educational resources
Start investing in Mutual Funds with TD Direct Investing
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1
Open an account
Select the TD Direct Investing account you want to open online or book an appointment.
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2
Fund your account
Transfer funds into your account with the online bill payment or funds transfer feature – or set up recurring deposits. Moving investments from another brokerage? Ask about how we could cover the transfer fees up to $150.1
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3
Start investing toward your goals
Build your portfolio using Mutual Funds, ETFs, Stocks, Options, GICs, and more.
Explore other investment types
Open an account online – it's fast and easy
Whether you’re new to self-directed investing or an experienced trader, we welcome you.
