| Genki |
I was looking over my rrsp mutal funds last night and started thinking that certain funds jsut suck. Liek the ones hwere there are no dividends or income gained. Cuz say by the time i retire and the markets crash again.. most of my rrsp's could be worth what i paid for them now. Basically no gain of any kind at all.
Now im thinking if i had more dividend funds or GIC's I will get something back for sure.. some gain on my investment.
am i suppose to keep an eye on my mutals and swithc them for GIC's when they get high? I thot the purpose of some of these funds was so that they will be more value than they are now, without you looking after them as much.... |
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| ManHunter |
Well, that depends on the amount of risk you're willing to take. You can go with safe funds and make 3-4% a year, or you can be more aggressive and go for the ones that can yield 12-14% a year, but the risk that they don't perform is greater.
At any rate, historically the market always goes up over any period of 10 years or so. It may go down for a few years (like right now), but it's always been temporary and it always has gone up more than gone down.
You can't invest your money for retirement in 30-40 years and only look at how it is doing short-term. It will not always go up over small periods of time, but it will go up over longer periods.
MH |
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| REFLUX |
agreed w/ MH
u could also diversify ur investments if u still feel sketchy bout MF's |
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| GTS Jeff |
| heh if they stay at the same value then u will have lost money due to inflation |
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| RF134A |
Don't forget to look at the fund's MER (Management Expense Ratio). If you have funds charging 3-4%, my advice to you is SWITCH. Depending on the performance of the fund, IMO up to 2.5% is fair. Afterall, everybody has to eat, right? Altamira has some decent no load funds. All their sales people are non-commissioned so they won't pressure you into buying an equity fund with a 4% MER *cough* Investor's Group *cough*. And they have a wider variety of funds to choose from, unlike those morons at BMO who will ONLY sell you their products according to the mix recommended by the questionairre and will NOT alter the mix unless you have the ability to part the Red Sea and make fire fall from the sky while standing on 1 leg and juggling chainsaws.
Look into iUnits (www.iunits.com), managed by Barclay's International LLC. The MER on their index funds are capped at 0.5% and mirror the S&P 500 or TSE60. You buy them just like shares of any company listed on the TSE so you will incur brokerage charges, so save up and buy a lot or 2 at a time.
Mutual Funds and iunits each have their place. Consult a professional (ie someone who doesn't work in a bank). |
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| Genki |
quote:
Originally posted by RF134A@Jan 21 2003, 10:37 PM
Don't forget to look at the fund's MER (Management Expense Ratio). If you have funds charging 3-4%, my advice to you is SWITCH. Depending on the performance of the fund, IMO up to 2.5% is fair.
ahh thats what MER was.... wasnt sure when i was shopping for some last wk for my rrsp.
mine so far range between 1.8-2,8% between teh 3 funds i hold so far at RBC
thanks for the info guys |
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| cflude |
MER is a important thing to know, however, you also need to see what kind of work they do for you, ie, index funds will always charge less as there were almost no work needed, because funds are to mimic a stock index
alot of company now offer no load funds(no commission) but watch what kind of MER you are paying.
I suggest go to www.morningstar.ca, there you can find out about quality of such fund you are buying.
Genki: you are worry about price comes down when you retire, mind you, after you retire, there is still a long way before you consumed all of your assets(I hope) usually between 20~ 40 years , right? so apply the same theory when you make investments.
nowadays, I would only buy my investments through broker, as it is cheaper(same fund can be charge cheaper through discount brokerage) you know where I work, perhaps I can help you choose a right profolio for you
cflude CFP |
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