Skip to content

Feature Stories

Media Room

Go beyond performance when selecting a mutual fund

Mutual funds can be an important part of your overall retirement plan. As with any investment, a mutual fund's past performance is no guarantee of its future success, so you need to look beyond performance alone when making your investment decisions.

Patricia Lovett-Reid, Senior Vice President, TD Waterhouse, provides tips on what to look for when selecting a mutual fund:

Start with the basics: Begin by reading the fund's prospectus and shareholder reports. These can help you learn about the fund’s investment strategy and the associated risks.

Assess volatility: The less volatile a fund, the less the investment risk, and vice versa.

Scrutinize fees: Look at the fund’s fees and expenses. Even small differences can translate into a large variation in returns over time.

Evaluate the fund’s impact on your portfolio: Most importantly, assess how the fund impacts the diversification of your portfolio. Remember, it is the performance of your overall portfolio that matters and not just the performance of each individual fund.

Keep it simple: All-in-one solutions, like TD Comfort Portfolios, contain a group of professionally selected mutual funds for each investor's specific investment preference - from conservative to growth. Selecting one can take a lot of the work out of selecting the right fund.

Keep these tips in mind and you will be well on your way to building a successful portfolio.

For further information on taking control of your financial future visit