Mutual Fund Fees

Experience the value of professional investment management.

Expertise is built right into every TD Mutual Fund

  • Professional fund managers and analysts constantly monitor market conditions and make investment decisions on behalf of fund investors.
  • TD Mutual Funds can provide you with diversification within or across sectors, investment types and geographic markets.
  • Fund managers can overweight or underweight assets to help optimize performance.
  • Active management may help reduce volatility of fund performance.

The value behind the MER

Management fee, made up of:
  • Portfolio management fees
  • Trailing commission
  • Operating cost
  • Taxes

Portfolio management fees - paid to the investment management firm

You can benefit from:

  • Potential to outperform an index
  • A more diversified portfolio than you could likely build on your own
  • Disciplined risk management
  • Research, investment selection and professional money management

Trailing commissions - paid to the mutual fund dealer servicing your account

You can benefit from:

  • Customer care
  • Ongoing personalized advice and service
  • Regular statements detailing transactions and performance

Operating costs - cover accounting, audit costs and record keeping

You can benefit from:
  • Confidence that your mutual fund is being managed responsibly
  • Regulatory oversight
  • Transparent governance
  • Accountability

Taxes - GST and QST or HST

Fee-Based Accounts

TD Asset Management's fee-based funds (F-Series) are some of the lowest-priced F-Series funds in Canada. The series offers a comprehensive line-up with fee-based solutions for various client needs.

Fee-based mutual funds provide greater fee transparency by clearly separating the fees you pay your Advisor for advice and services (the trailing commission) from the fees the fund charges. For example, when you purchase a fee-based mutual fund, the fee for advice and service is disclosed up front and based on the assets in your account, as opposed to being embedded in the MER like a regular mutual fund.

Benefits of investing in fee-based mutual funds:
  • Transparent fee structure for advice and value-added services - the fee for advice and service is negotiated up front
  • Easy-to-understand fee structure - the transparency allows you to better understand what you're paying for
  • May be tax deductible - the fee for advice and service may be tax deductible when paid separately from the fee charged by the fund

Sales charges and short-term trading fee

Mutual fund sales charges, or commissions, are called loads. These may be paid to the advisor, dealer or mutual fund company, depending on the type of load (see below). For any given fund, you may be able to choose various combinations of loads and fees. Your advisor can help you select the option that works best for your current needs. In certain circumstances, a short-term trading fee may apply (see below).
  • No load
    No sales charges associated with the fund.
  • Back-end load
    Paid to the fund company at redemption
    (when you sell the fund back to the fund company).
  • Front-end load
    Paid to your advisor at time of purchase for providing advice and facilitating sale.
  • Short-term trading fee
    May be applied if you switch or redeem a fund within 7 days of purchasing it (30 days for index funds); designed to encourage long-term investing.
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