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Mutual Fund Fees

Expect to pay fees for investments whether they are distributed through advisors, banks, credit unions or brokers. The fees associated with mutual funds may not be visible because they are often charged indirectly and are taken out of the invested funds periodically.

However, every fund is required to disclose its Management Expense Ratio (MER) as an annual percentage of the total value of your investment. 

The MER covers four types of costs:

  1. Investment Management fees are paid to the portfolio manager covering the cost of the fund oversight, service and administration
  2. Trailing commissions, also known as a trailer, are paid by most funds to the investment dealer, and a portion may be paid to your investment professional in return for investment advice and account servicing
  3. Operating expenses of the fund which include day to day costs such as regulatory filing fees, bookkeeping and administrative fees, audit fees, legal fees, custody fees and marketing costs
  4. Taxes, which the rate and type of tax varies by province. 

Your advisor is required to disclose fees so you can better understand the costs associated with your investments before you buy.

Mutual funds, other securities and securities related financial planning services are offered through Credential Securities, a division of Credential Qtrade Securities Inc. Credential Securities is a registered mark owned by Aviso Wealth Inc. Mutual funds and related financial planning services are offered through Credential Asset Management Inc.

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