Administrative fees include, among others, legal, audit and registration fees. They vary from one mutual fund to another and are listed in the prospectus. Some mutual funds do not charge all these fees. To know if this is to your advantage, you must consider the fund's return, management fee ratio and the quality of the service it offers. Mutual funds are trusts or corporations that sell shares or units to investors so they can pool their funds, usually to buy stocks or bonds.
Mutual funds are diversified, accessible and managed by professionals.
Units can be redeemed on demand and their performance is easy to follow in newspapers. Mutual funds have been growing in popularity in Canada. The calculator was launched earlier this year as a joint initiative of Industry Canada and the Ontario Securities Commission. It has proved popular with investors. In the coming weeks as Canadians think about RRSPs and mutual funds, we encourage them to use the Mutual Fund Fee Impact Calculator.