If you’re looking for a solid investment option to begin your investment journey or diversify your portfolio, mutual funds are a great choice. With so many different funds to choose from, it can be tricky to know which ones are the best, especially if you’re new to mutual funds. Here is a list of the 10 best mutual funds in Canada, based on performance and stability. If you’re ready to start investing, be sure to check out one or more of these funds!
Table of contents
- What is a mutual fund?
- 10 Best Mutual Funds in Canada
- 1. Mackenzie Canadian Equity F Series
- 2. Scotia Canadian Equity F Series
- 3. RBC Canadian Equity Income Fund F Series
- 4. RBC Vision Global Equity Fund F Series
- 5. NBI Global Equity Fund F Series
- 6. Canoe Global Equity F Series
- 7. Beutel Goodman Core Plus Bond Fund F Series
- 8. Fidelity Canadian Short-Term Bond Fund F Series
- 9. TD Canadian Corporate Bond Fund F Series
- 10. PIMCO Monthly Income Fund F Series
- Which bank is best for mutual funds in Canada?
- What is the best performing mutual fund in Canada?
- Investing in mutual funds in Canada
A mutual fund is an investment vehicle that pools money from numerous investors. The funds are used to invest in a portfolio of securities. These can include stocks, bonds, and other assets. Mutual funds are managed by a professional money manager who makes decisions about where to invest the funds. The fund’s performance is dependent on the performance of the underlying securities.
Mutual funds offer investors several advantages. They provide diversification, which means they spread risk among many different investments and assets. They also offer professional management, which can minimize the amount of time and effort required to invest. In other words, less work and decision making is placed on you as the investor. Additionally, mutual funds are often more affordable than investing in individual securities. For these reasons, mutual funds are a popular choice for many Canadians.
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Let’s take a look at the key pros and cons of mutual funds so you can make an informed decision about whether they are right for you.
|Investing in a variety of stocks and other assets without having to purchase each security separately||Fees are higher than other similar products on the market|
|Letting the portfolio management team actively manage your account using their expertise||May not be as tax efficient as ETFs|
|Ability to pool money with other investors to access a wider range of investment options, thereby building a more well-rounded portfolio||No liquidity throughout the day|
|You don’t have to buy a mutual fund through a bid-ask spread||This investment option has not been shown to make higher returns than the market after accounting for fees|
When it comes to the financial landscape in Canada, one of the most notable areas is mutual funds. Over the years, these investments have proven to be a reliable and time-tested vehicle for investors seeking portfolio diversification and asset appreciation. In fact, Canadians are estimated to have roughly more than $1.9 trillion invested in mutual funds as of 2022.
What’s more, they provide advantages such as a wide variety of investment options, passive investments that track trends and indices, and active investments that rely on sophisticated research with a long-term holding period which often leads to greater growth potential over time.
Thanks to their success in keeping investors well informed throughout their journey, mutual funds continue to dominate the investment market in Canada today. Due to their flexibility, they remain an attractive option when considering how to grow your wealth in our nation’s current economic environment.
10 Best Mutual Funds in Canada
|Mutual Fund||Total Assets||MER|
|Mackenzie Canadian Equity Fund||$519M||0.99%|
|Scotia Canadian Equity Fund||$341M||1.05%|
|RBC Canadian Equity Income Fund||$3.2B||0.76%|
|RBC Vision Global Equity Fund||$1.5B||0.99%|
|NBI Global Equity Fund||$1.9B||1.12%|
|Canoe Global Equity Fund||$778M||1.25%|
|Beutel Goodman Core Plus Bond Fund||$92M||0.57%|
|Fidelity Canadian Short-Term Bond Fund||$552M||0.6%|
|TD Canadian Corporate Bond Fund||$3B||0.68%|
|PIMCO Monthly Income Fund||$21M||1.39%|
1. Mackenzie Canadian Equity F Series
Mackenzie is a non-bank asset manager in Canada that runs an excellent Canadian equity mutual fund. This fund has outperformed most of its competitors for many years and currently manages a large sum of assets. This mutual fund focuses on large Canadian stocks, containing both value and growth stocks. It would be classified as a medium-risk investment.
2. Scotia Canadian Equity F Series
Scotiabank’s Canadian Equity mutual fund should be strongly considered when adding Canadian exposure to your portfolio. The fund has seen great returns over the long term, and it comes with an extensive performance track record. This mutual fund focuses on stocks of larger Canadian companies across both value and growth styles. It experiences medium risk relative to other investments.
3. RBC Canadian Equity Income Fund F Series
The RBC Canadian Equity Income Fund is a good option for investors who want to invest in Canadian stocks and receive regular income payments. The fund has excellent long-term performance, with a track record dating back many years. Out of our entire list, this one has the largest amount of assets under management. Additionally, the fund focuses on large Canadian stocks within the value style of investing, which carries moderate risk.
4. RBC Vision Global Equity Fund F Series
The RBC Vision Global Equity Fund is a great investment choice if you’re looking to invest in stocks internationally. The fund has performed well over the years and comes with a long track record to back it up. It’s also worth noting that the fund focuses on large global stocks of the growth style, making it a medium-risk investment.
5. NBI Global Equity Fund F Series
National Bank’s Global Equity Fund is an excellent choice of mutual fund to add to your portfolio, especially if you’re looking for a growth-style option. The performance has been great and it comes with a medium-length performance track record. Plus, in terms of size, it is one of the larger funds by assets under management.
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6. Canoe Global Equity F Series
Canoe’s Global Equity mutual fund is an excellent choice for Canadians, with great performance across several time frames and a medium-length track record. This mutual fund invests in large global stocks across the growth style, and Canoe labels it as being medium risk. The only downside is that it has a relatively higher MER than its peers.
7. Beutel Goodman Core Plus Bond Fund F Series
The Beutel Goodman Core Plus Bond Fund is a great fixed-income solution that has seen amazing performance over time. This mutual fund invests in Canadian bonds with the goal of maximizing return on investment. The strategy involves some exposure to potential interest rate shifts and investing in average-quality bonds but is still considered low risk by Beutel Goodman standards.
8. Fidelity Canadian Short-Term Bond Fund F Series
Fidelity, a leading investment manager globally, offers a phenomenal Canadian fixed-income mutual fund. The fund has achieved excellent long-term performance and boasts an extensive performance track record. This fund’s mandate states that it invests in short-term Canadian bonds with the goal to reduce exposure to interest rates for investors and maintain average bond quality. The Fidelity Canadian short-term bond fund is classified as low risk.
The TD Canadian Corporate Bond Fund is a great choice for anyone looking to invest in bonds issued by Canadian companies. The fund has good performance and a medium-length performance track record. It is also massive in size, making it one of the largest Canadian mutual funds by assets under management. However, the strategy does have some sensitivity to changes in interest rates and only invests in average-quality bonds. As such, it is categorized as low risk overall.
10. PIMCO Monthly Income Fund F Series
PIMCO’s Monthly Income Fund is one of the most well-renowned bond funds in Canada, and for good reason. With excellent performance and a long track record, this fund has been a staple in investment advisor models on the fixed-income side. The strategy behind their success is investing in average-quality bonds while being sensitive to changes in interest rates.
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Which bank is best for mutual funds in Canada?
When it comes to finding the best mutual funds in Canada, there are plenty of banks that can meet your needs.
Generally speaking, it’s best to shop around and compare various banks in order to find the best options for you. When making a decision about which bank is best for you, consider their selection of mutual funds as well as their fees and other services.
Additionally, many share purchase plans offer access to low-cost mutual fund products from multiple banks. Doing some research online can also help narrow down your choices by allowing you to read customer reviews and get an idea of what other consumers think about each bank and mutual fund.
By considering all these factors, you can make an informed decision about which bank best meets your needs when investing in mutual funds in Canada.
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As Canadians strive for the best return on their money, understanding the full performance of a mutual fund is essential. The track record of a fund is more than just its returns over the past year. To truly understand the performance, investors must compare its historical returns year over year.
Fidelity’s Technology Innovators Fund (Series F) stands out as the Canadian mutual fund with the best 10-year annualized return. This outperforming track record isn’t only due to luck. Investors have likely seen such strong results thanks to prudent and consistent management of investments under tech industry trends and continual monitoring of market metrics. For those looking to maximize their financial gains without crazy risk, this fund is well worth considering. The risk rating is medium-high and the MER is 1.13%.
Investing in mutual funds can be a great way to get your portfolio diversified and reduce your risk. Mutual funds are collections of managed portfolios of stocks, bonds, and other investments. They offer investors the ability to spread their assets across different sectors, allowing them to benefit from the potential appreciation of many investments rather than just one.
When investing in mutual funds in Canada, it’s important to select a reputable provider with an established track record in fees and performance. Some factors that should be taken into consideration when selecting a fund include return on investment (ROI), fees, past performance history, fund manager expertise, and liquidity. There are many well-established mutual fund providers in Canada. Each fund has distinctive features that make them suitable for specific types of investors. An assessment of the underlying funds should be done to ensure that the mutual funds meet an investor’s individual needs and risk tolerances.
Read More: How to Invest in Mutual Funds in Canada