There seems to be a price war brewing in the mutual fund industry. Fidelity Canada fired the opening shot last year when it reduced the MER on front-end load funds by 20-30 bps. CI Funds recently announced that it is seeking to improve transparency in pricing and will reduce fees on some of its mutual funds between 10-25 bps.
In a low-return environment, investors should be paying a lot of attention to costs. While the fee cuts are a step in the right direction, the median MER for Canadian equity mutual funds is a very high 2.7%. It should be noted that the MER of iUnits i60 is only 17 bps, which is less than some of the fee cuts proposed by fund companies.
Note: AllThingsFinancial is hosting the 3rd Carnival of Personal Finance, with contributions from many personal finance bloggers. Check it out!
This blog is now a proud member of the Financial Webring, where Canadian “DIY investors meet for financial education and empowerment”. Do check out the forum for interesting comments on a variety of financial topics.
Bookmark: del.icio.us Digg StumbleUpon
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment