Mutual Fund Investments

TD Direct Investing provides access to mutual funds, allowing you to put your money in one place, and still have access to a wide range of investments.

What is a mutual fund?

A mutual fund is a portfolio of bonds, stocks, or other investable assets like money market products, that are selected and managed by a professional investment team on behalf of many investors, like you. Decisions are made with the assistance of investment research. A mutual fund pools your money with other investors so that you can gain access to more underlying investments than you would normally have access to.

Why invest in mutual funds at TD Direct Investing?

By investing in mutual funds at TD Direct Investing you will have the flexibility of holding all of your investments in one account: stocks, bonds, options, and mutual funds. For help with mutual funds and related portfolio questions, contact an Investment Representative at 1-800-465-5463. At TD Direct Investing, we're here for you. Monday to Friday, 7 am to 6 pm ET.

Benefits of investing in a mutual fund

Mutual funds are an affordable and convenient way for investors to gain access to investments that would otherwise only be available to large institutions or wealthy individuals.

1. Professional Money Management

Mutual funds are managed by professional money managers who have access to detailed company research, economic data, and an understanding about how world events will affect your investments – even those in foreign markets where information is not always readily available.

2. Diversification

Spreading your portfolio over several different investments can reduce the overall risk within your portfolio. Since many investors cannot afford to split their portfolios into several different securities without paying a fortune in commissions, mutual funds are the ideal solution. By pooling the resources of several retail investors mutual funds can get better pricing, than most individual investors.

3. Transferability

Since most mutual fund families offer more than one type of mutual fund, a mutual fund investor can move their investment from one sector to another, from one country to another easily.

4. Liquidity

Mutual fund units are bought from, and sold back to the mutual fund company at the next available closing Net Asset Value Per Share. Any investor who wants to buy or sell a mutual fund can do so with less worry about whether a liquid market is available.

5. Fractional units

Mutual funds offer the unique feature to investors of allowing for fixed dollar investments. For purchases of equities you cannot invest a fixed dollar amount, you can only purchase a fixed number of whole shares - and you may not be able to fully invest idle cash. If you want to purchase a set dollar amount of a mutual fund, you will be allowed to purchase fractional units to help ensure that you remain fully invested.

6. Compounding

Any distributions that are paid by the fund can be automatically re-invested into additional units of the same fund at no cost. This will help to ensure that you are staying fully invested, thus maximizing your returns through compounding.

7. Save time

By having the mutual fund manager manage your investments you no longer have to spend your time analyzing and worrying about individual stocks.