You are now leaving our website and entering a third-party website over which we have no control.
Understanding mutual funds
Whether you’re investing on your own or working with a financial advisor, our TD Mutual Funds can help you lower costs, increase your return potential and achieve your investment goals.
Benefits of TD Mutual Funds
Investment categories
Learn about the different types of mutual funds available from TD Asset Management Inc. (TDAM) to help you understand the roles they can play in your portfolio.
Equities: Equity mutual funds pool money to buy a diversified portfolio of stocks.
Fixed Income: Fixed income funds invest in securities like bonds and mortgages, and offer the potential for regular cash flow while preserving capital.
Portfolio Solutions: All-in-one solutions that help make investing easy.
Money Market: Money market funds invest primarily in treasury bills and other high quality, low risk short-term investments.
Alternatives: Our alternative investment strategies have been refined over decades, with a focus on robust portfolio management and diversification.
Why invest in TD Mutual Funds
TD Asset Management Inc. (TDAM) is a leading asset manager in Canada with an expanding global presence. We offer an extensive history of innovative solutions designed to provide better risk-adjusted returns with a long track record in integrating public and private market capabilities. With TDAM, there's a lot that goes into your portfolio.
TDAM funds in focus
In this section, we shine a light on funds that have performed well for our investors in the recent past.
Mutual fund investing basics
Learn about mutual funds from some of the frequently asked questions.
A mutual fund is an investment vehicle where money collected from various investors is pooled together for the purpose of investing in different assets including stocks, bonds, money market investments like cash, gold, etc. These investments are all selected by a professional investment manager.
Distributions paid by mutual funds represent earnings generated by different types of investments held in the fund. As these investments earn income or are sold by the fund, the earnings are distributed in various ways. Depending on the source of the earnings, mutual fund distributions can have different tax implications and should be clearly understood for efficient tax planning.
The Net Asset Value (also referred to as the Net Asset Value Per Share or NAVPS) of a mutual fund is the price at which the shares or units of a fund are traded. The NAV is obtained by dividing the total value of all securities (minus any liabilities) in the fund by the total number of shares or units that are outstanding.
There are a number of risks associated with investing in a mutual fund. These can include, but are not limited to:
-
Market risk - The value of a fund is dependent on risks that affect the entire market.
-
Liquidity risk - Liquidity risk is the possibility that a fund will not be able to convert its investments to cash when it needs to or will not be able to do so at a reasonable price.
-
Equity risk - When the economy is strong, the outlook for many companies will be good, and share prices will generally rise, as will the value of funds. On the other hand, share prices usually decline in times of general economic or industry downturn. In addition, the price of equity securities of certain companies or companies in a particular industry may fluctuate differently than the overall stock market because of changes in the outlook for those companies or the particular industry.
-
Credit risk - Credit risk includes the risk that the issuer of a fixed income security, like a bond, will be unable to repay their outstanding obligations.
-
Interest rate risk - Interest rate risk is the possibility that the interest rates are changed by the central bank. Typically, the value of fixed income securities rises when interest rates fall, and vice versa.
-
International market risk - Funds that invest in securities of foreign issues are subject to additional risks. For example, the value of investments in certain countries may be negatively affected due to geopolitical events in the country or region.
-
Foreign currency risk - The value of an investment held by a fund will be affected by changes to the value of the currency in which the investment is denominated, relative to the base currency of the fund.
At TDAM, each fund is assigned a risk rating. This is based on how much the fund's returns have changed from year-to-year. It does not represent how volatile the fund will be in the future and the rating can change over time. A fund with a low risk rating can still lose money.
Insights and investor education
How to Invest in Mutual Funds
Ready to get investing? Check out some of the options to start investing in mutual funds with TD. If you don’t bank and/or invest through TD, feel free to ask your advisor about our mutual fund lineup.
Legal
Commissions, trailing commissions, management fees and expenses all may be associated with mutual fund investments. Please read the fund facts and prospectus, which contain detailed investment information, before investing. Mutual funds are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer and are not guaranteed or insured. Their values change frequently. There can be no assurances that a money market fund will be able to maintain its net asset value per unit at a constant amount or that the full amount of your investment will be returned to you. Past performance may not be repeated. Mutual fund strategies and current holdings are subject to change.
® The TD logo and other TD trademarks are the property of The Toronto-Dominion Bank or its subsidiaries.
TD Mutual Funds are managed by TD Asset Management Inc., a wholly-owned subsidiary of The Toronto-Dominion Bank and are available through authorized dealers.