Mutual funds a popular RRSP choice
Decisions, decisions.
Registered Retirement Savings Plan (RRSP) season is upon us and there are a wide range of investment options available from which to choose.
So how do you plan on making these important investment decisions?
Well, one of the more popular investment choices seems to be mutual funds for RRSPs, according to a new report by BMO Bank of Montreal.
The study revealed that 72 per cent of Canadians say they hold mutual funds within their RRSP, and that mutual funds make up about one-third (31 per cent) of all holdings held in RRSPs.
Other ways people are building their RRSPs include Guaranteed Investment Certificates (GICs) (21 per cent); cash (20 per cent); stocks (11 per cent), bonds (nine per cent); and Exchange Traded Funds (ETFs) (four per cent).
Serge Pepin, Vice President, Investment Strategy, BMO Asset Management Inc., says mutual funds remain a popular investment option because they offer many benefits including immediate diversification.
"To ensure investors choose the funds that best suit their needs, an investment professional can not only help navigate the wide array of mutual fund options available, but also provide financial planning and risk tolerance assessment advice," explains Pepin.
The study also revealed that 81 per cent of those polled in the survey prefer income-generating funds whether inside or outside of an RRSP.
"As Canadian Boomers begin to retire in greater numbers, it's natural that many would be looking to generate income from their investments, including mutual funds," he adds.
Yes, generating income is always a good thing.
By Donna Donaldson, MSN Money
Do you hold mutual funds within your RRSPs?
Posted by: ZREXER | Feb 22, 2013 12:29:51 PM
I use to hold mutual funds when they actually had reasonable returns. I dumped 100% of my mutual funds about 4 years ago. People need to understand the insidious way that the annual MER that mutual fund companies charge eat away at your investment. If the fund you have has a MER of 2.5% and you have a mutual fund of $100,000, then you are paying your mutual fund company $2500 annualy whether your fund makes you a dime or not.
Back when you could get double digit returns, this was workable, not any more.
Canada has the highest MER % in the world. If you want to help your fund advisor put HIS kids through college, then keep contributing to your mutual funds, your advisor loves you!
Posted by: S. H. | Feb 26, 2013 2:07:33 AM
Mutual funds used to be good, not any longer. I have a bunch of looser funds within my RRSP that I can't even claim the loss. Bunch of inactive managers that take their MER every night don't care if we have to wait and hope to God to get a chance to get out with less loss. After 2008 crash I haven't even reached to my purchase price of 2006 and 07 yet. I have lost almost half of the amount of most of my funds. My calls and emails to portfolios' managers don't even get any response. The worse is that this year I am getting to the age that I have to get out of my RRSP or move to what Government wants or demands. Nobody cares that in 6-7 years ago we couldn't know that global debts and all other nasty things happens to the market.The rich and powerful in control of finances made the mess around the world and little people like me have to pay for it.
Posted by: S. H. | Feb 26, 2013 2:09:33 AM
Mutual funds used to be good, not any longer. I have a bunch of looser funds within my RRSP that I can't even claim the loss. Bunch of inactive managers that take their MER every night don't care if we have to wait and hope to God to get a chance to get out with less loss. After 2008 crash I haven't even reached to my purchase price of 2006 and 07 yet. I have lost almost half of the amount of most of my funds. My calls and emails to portfolios' managers don't even get any response. The worse is that this year I am getting to the age that I have to get out of my RRSP or move to what Government wants or demands. Nobody cares that in 6-7 years ago we couldn't know that global debts and all other nasty things happens to the market.The rich and powerful in control of finances made the mess around the world and little people like me have to pay for it.
Posted by: Clear & Focused | Feb 26, 2013 10:30:49 AM
This piece is a joke. I truly feel sorry for any people who read this propaganda and actually believe it, let alone those fools who act based on this "advice". We are dealing with financial vampires here, make no mistake.