The Frugal Canadian

A frugal spender seeks to find new ways to save money and increase her net worth.

Monday, December 05, 2005

Low Management Expense Ratios

I wanted to see how my management fees on my TD mutual funds compared to the TD's e-Series funds. I found that I can cut my fees in half.

TD funds Current
e-Series

MER
MER

Cdn Bond Index 0.91%
0.48%

Cdn Equity Index Pure 0.88%
0.31%

Cdn Equity 2.25%
na

US Equity 2.47%
0.33%


Searching through the funds wasn't an easy task and I found for some funds such as the Canadian Bond Index fund, there were 4 almost identical funds all with differing management fees ranging from 0.48% to 1.07%. I examined both the portfolio performance as well as the holdings and the differences amounting to less than 0.2% in favour of the e-Series.

My obvious choice is to sell my existing funds and switch to the e-Series. Since all the funds are held in my RRSP, I won't be facing taxes on my dispositions.

A listing of all the available e-Series funds can be found here:
http://www.tdcanadatrust.com/mutualfunds/prices.jsp

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