The Best Mutual Funds to Invest in Now

Investing in mutual funds can be a smart move for building wealth, whether you’re new to the game or have been doing it for a while. There are a ton of different options out there, which can make choosing the right ones a bit tricky. This article will help you find some of the best mutual funds that have shown good performance over time.

Key Takeaways

• Mutual funds offer an easy way to diversify your investments.
• They are managed by professionals, which can save you time and effort.
• Fees can vary a lot between different mutual funds, so always check those.
• Past performance doesn’t guarantee future results, but it’s a good starting point.
• Consider your own financial goals and risk comfort when picking funds.

1. AGF Global Select Series F

AGF Global Select Series F is a global equity fund that offers investors diversification. The fund is composed of approximately 75% US assets, 4% Canadian assets, with the remainder invested in the EU, Asia, and Latin America. It’s worth noting that this fund has been around for 23 years, and while it had a rocky start, it has since rebounded to provide solid returns. If you want to learn more about how to start investing in mutual funds, there are resources available to guide you.

AGF Global Select now beats its benchmark index by almost 5 percent per year in the last 10 years. It continues to give solid returns, with a cash-flow growth of more than 21 percent. The management expense ratio (MER) is at a comfortable 1.01 percent, and larger investors might even get a discount. The initial investment is $500, with a minimum of $25 for subsequent investments. If you need guidance from a financial advisor, it’s always a good idea to consult with one.

Here’s a quick look at the fund’s top holdings:

This fund experienced significant setbacks during the 2002-2003 bear market and the 2008 financial crisis. However, its subsequent performance has been impressive, demonstrating resilience and strong growth potential.

Here are some key points to consider:

• Investment style: Large growth
• Risk level: Medium
• Instant diversification across global markets

2. BlueBay Emerging Markets Corporate Bond Fund

BlueBay, an asset manager with its roots in London, specializes in European fixed-income debt management. The Royal Bank of Canada acquired it back in 2010. However, BlueBay’s financial services were available in Canada for a decade before the acquisition.

This fund is suitable for investors seeking a low- to medium-risk investment option. While its initial performance upon re-entering the Canadian market might not seem spectacular, it has demonstrated solid results.

The BlueBay Emerging Markets Corporate Bond Fund offers diversification by holding assets outside North America. This can be quite appealing to investors looking to spread their risk.

This fund carries a MER (Management Expense Ratio) of 0.94 percent, which represents about a third of its total returns. It’s something to keep in mind when evaluating its overall performance.

Here’s a look at the fund’s top holdings:

Investing in emerging markets can provide diversification benefits, but it’s important to understand the risks involved. These markets can be more volatile than developed markets, and political and economic instability can impact investment performance. Always do your homework and consider your risk tolerance before investing.

3. CI Canadian Dividend Funds Series F

This fund is a popular choice for investors seeking a blend of US and Canadian equities, with a strong emphasis on local stocks. It stands out for its consistent performance, often surpassing its benchmark index even after accounting for its Management Expense Ratio (MER).

What makes this fund interesting?

• It typically holds around 40 carefully selected stocks, a relatively small number compared to many other funds.
• The fund focuses on companies with a history of strong performance.
• The minimum initial investment is relatively low, making it accessible to a wide range of investors.

This fund’s concentrated portfolio reflects a strategy of investing in a select group of high-quality companies, potentially leading to more focused growth and dividend income.

Here’s a glimpse into some of its top holdings:

This fund’s investment size is around $1.7 billion, categorized as a large blend with a medium risk level. Understanding the mutual fund industry’s growth is key to appreciating the fund’s place in the market. It’s worth noting that the fund is heavily invested in Canadian equities, with over 95% allocation. Investors should also be aware of the dividend allowance for the current tax year when considering dividend funds.

4. Dynamic Canadian Dividend Series F

One fund that’s been getting a lot of attention is the Dynamic Canadian Dividend Series F. It’s known for its conservative management style and focus on established Canadian companies. Think of names like Toronto Dominion Bank, Power Corporation of Canada, and Enbridge – these are the kinds of stocks you’ll find in its portfolio.

This fund aims to provide a solid dividend income, and it’s been pretty consistent in doing so. Currently, it offers a yield around 3.4 percent, with a MER of 1.14 percent. The fund is heavily invested in Canadian assets, with about 83 percent of its holdings in Canada. US assets make up another 12 percent, with the rest spread across international equities and cash. Investors are seeking alternative investment vehicles to diversify their portfolios.

Here’s a quick look at some of its key stats:

• Investment Size: $639 million
• Investment Style: Large Value
• Risk Level: Low to Medium

This fund could be a good fit if you’re looking for a relatively stable investment that provides regular income through dividends. It’s important to remember that past performance doesn’t guarantee future results, but its track record is something to consider.

Here’s a snapshot of the fund’s top holdings:

It’s worth noting that hedge funds are also gaining traction among investors.

5. Mackenzie Bluewater Canadian Group Balanced Fund Series F

This fund is a blend of 66% stocks and 30% fixed-income bonds, primarily from Canadian and American companies, with some international holdings. It’s managed by Mackenzie Financial, a subsidiary of IG Wealth Management (formerly Investors Group). IG Wealth Management had a past reputation for underperforming funds and high fees, but things have changed.

This fund has grown significantly to $5.4 billion and now offers good returns. The management fee is now a more reasonable 0.7%. This turnaround is likely due to strategic changes at Mackenzie, including bringing in experienced portfolio managers. Still, doing your homework before investing is always a good idea. You can explore other alternative asset management options if this doesn’t fit your needs.

It’s worth noting that past performance doesn’t guarantee future results. Always consider your own risk tolerance and investment goals before making any decisions.

Here’s a look at some of the fund’s top holdings:

Some key facts about the fund:

• Investment size: $5.4 billion
• Investment style: Large growth
• Risk level: Low to medium

Consider exploring hedge fund strategies as well to diversify your portfolio.

6. Mawer Global Equity Fund

Mawer Global Equity Fund is managed by Mawer Investment Management, an independent firm out of Calgary. Their approach is pretty straightforward: aim for solid, long-term gains by investing in companies that might not be the flashiest but are reliable. Their slogan, "Be Boring. Make Money," pretty much sums it up.

If you look at what the fund holds, you’ll see a lot of familiar names from everyday life. Think Johnson & Johnson, Microsoft, and Alimentation Couche-Tard (that’s the company behind Circle K convenience stores). These aren’t exactly high-flying tech startups, but they’re stable, established businesses. You can usually find this fund on most Canadian online brokerage platforms, and the minimum initial investment is around $500. Plus, it’s eligible for RRSP and TFSA accounts, which is a nice bonus.

Since it started in 2009, the Mawer Global Equity Fund has generally outperformed similar equity funds by about 1% annually, after taking fees into account. Of course, past performance doesn’t guarantee future results, but its history of solid returns is definitely worth noting.

Here’s a quick look at some of their top holdings:

The fund’s investment style is large blend, and it’s considered a medium-risk investment. Mawer has a few other funds too, like the Mawer Canadian Equity Fund and the Mawer International Equity Fund, if you’re looking to diversify further.

Here are a few key things to consider:

• Investment Size: Around $9.3 billion.
• Management Style: Focuses on large-cap blend.
• Risk Profile: Considered medium risk.

7. North Growth Canadian Equity Fund Series F

This fund focuses on smaller Canadian companies that show potential for growth and are reasonably priced. It’s a different approach compared to the TSX Composite Index, which is dominated by larger companies. This difference can lead to better performance.

With about $44 million in assets and a MER of 0.70%, it’s a smaller fund. One key factor in its success is that the fund managers are required to invest in their own funds, aligning their interests with those of the investors.

This alignment of interests is a great way to ensure fund managers are working hard to get good returns. It’s like they have skin in the game, just like you do.

Here are some key details about the fund:

• Investment Size: $44 million
• Investment Style: Mid Blend
• Risk Level: Medium to High

Here’s a look at the fund’s top holdings:

This fund’s strategy of focusing on smaller stocks can lead to significant outperformance. If you’re looking to start investing in mutual funds, this could be an option to consider. It’s always a good idea to consult with an experienced financial advisor to see if it fits your investment goals.

8. PH&N Small Float Fund Series F

This fund manages about $1.2 billion. It leans towards a mid-growth investment style and carries a medium to high risk level. Since its inception in 2002, the fund has reportedly achieved close to a 10 percent annual portfolio growth rate.

To achieve these returns, the fund uses specific strategies:

• It concentrates its investments, with roughly half of its assets in its top 10 holdings.
• The fund’s index is weighted towards larger companies.
• It focuses on small stocks that show potential for growth and are reasonably priced.

One thing to note is that this fund is exclusively available to Royal Bank clients. Also, the management fee isn’t fixed; it’s negotiated based on the investment amount. This approach to attracting investors is a key strategy for small and mid-sized funds.

Keep in mind that concentrated positions can lead to higher volatility. While the potential for high returns is attractive, it’s important to consider your risk tolerance before investing.

9. RBC Life Science And Technology Series F

This fund is worth a look, especially if you’re feeling optimistic about the economy. The RBC Life Science and Technology Fund has done pretty well, beating its benchmark by almost 4% each year. It might not seem like a lot, but it can add up over time. That’s why it’s on our list of top Canadian mutual funds.

The fund does have a couple of things to keep in mind. It doesn’t do as well as safer investments when the market isn’t doing great. Plus, the 0.94% MER can eat into any dividends you might get. But, these things haven’t stopped the fund from growing in the long run.

Here’s a look at the fund’s top holdings:

This fund is pretty focused on growth, especially in the tech and healthcare sectors. If you believe in the long-term potential of these industries, it could be a good fit for your portfolio. Just remember that it can be more volatile than some other investments.

Here are some things to consider before investing:

• Investment Size: $2.3 billion
• Investment Style: Large growth
• Risk Level: Medium

When considering alternative asset management, remember to diversify your portfolio. Also, keep in mind that hedge fund strategies can vary widely depending on market conditions.

10. TD US Mid-Cap Growth – F

This fund focuses on mid-sized U.S. companies with growth potential. It’s a good option for investors looking for exposure to the U.S. market beyond the well-known large-cap stocks. The fund aims to deliver long-term capital appreciation by investing in companies that are expected to grow faster than the average.

Here’s a quick look at some key details:

• Investment Size: $3.2 billion
• Investment Style: Mid Growth
• Risk Level: Medium

It’s worth noting some of the fund’s top holdings. These companies often include names that might not be immediately familiar but represent interesting opportunities for growth. For example, you might find companies like Marvell Technology or Textron among the top allocations. These aren’t your typical household names, but they operate in sectors with solid growth prospects.

Here’s a snapshot of the fund’s top holdings:

Investing in mid-cap companies can offer a balance between the stability of large-caps and the high-growth potential of small-caps. This fund could be a good fit if you’re looking to diversify your portfolio with exposure to this segment of the U.S. market. Remember to consider your own risk tolerance and investment goals before making any decisions.

Before investing, it’s always a good idea to check out TD mutual funds and read up on what they offer. Also, remember to consider the hedge funds’ AUM when making your investment decisions.

Final Thoughts on Mutual Funds

So, we have gone over a lot about mutual funds. It is clear that picking the right ones can really help you build up your money over time. Remember, it is not just about what is popular right now. You need to think about your own money goals, how much risk you are okay with, and how long you plan to invest. Doing your homework and maybe even talking to a financial expert can make a big difference. They can help you figure out what works best for your situation. The main thing is to be smart about your choices and keep an eye on how your investments are doing. That way, you are setting yourself up for a better financial future.

Frequently Asked Questions

What are the advantages of mutual funds?

Mutual funds offer several benefits. They let you put your money together with other investors, which means you can invest in a wider variety of stocks and bonds than you might be able to on your own. This helps spread out risk. Plus, professional money managers handle the investments for you, so you don’t have to spend a lot of time researching companies.

Are mutual funds a good investment in Canada?

Yes, mutual funds can be a good investment in Canada, but it really depends on your personal financial situation, how much risk you’re comfortable with, and what your money goals are. If they fit well with your plans, they can be a smart way to grow your wealth over time.

What are the top performing mutual funds in Canada for the last ten years?

The top-performing Canadian mutual funds over the last ten years include AGF Global Select Series F, BlueBay Emerging Markets Corporate Bond Fund, CI Canadian Dividend Fund Series F, Dynamic Canadian Dividend Series F, Mackenzie Bluewater Canadian Group Balanced Fund Series F, Mawer Global Equity Fund, North Growth Canadian Equity Fund Series F, PH&N Small Float Fund Series F, RBC Life Science and Technology Fund Series F, and TD U.S. Mid-Cap Growth Fund Series F.

What are the top performing mutual funds in Canada for the last five years?

According to Morningstar, some of the best performing Canadian mutual funds over the last five years are: CI Morningstar Canada Value Index ETF, CI Morningstar Canada Momentum Index ETF, MDPIM Canadian Equity Index Pool, NBI Sustainable Canadian Equity ETF, RBC QUBE Canadian Equity Fund, and SEI Canadian Equity Fund.

What exactly is a mutual fund?

A mutual fund is like a big pot of money where many people put their savings together. This big pot is then managed by experts who invest it in different things like stocks, bonds, or other assets. This way, individual investors can own a small piece of many different investments, which helps reduce risk.

Who should consider investing in mutual funds?

Investing in mutual funds can be a good choice for people who want to grow their money over time but don’t have the time or knowledge to pick individual stocks and bonds. They are also good for those who want to spread their money across many different investments without needing a huge amount of cash to start.

Peyman Khosravani

Peyman Khosravani is a global blockchain and digital transformation expert with a passion for marketing, futuristic ideas, analytics insights, startup businesses, and effective communications. He has extensive experience in blockchain and DeFi projects and is committed to using technology to bring justice and fairness to society and promote freedom. Peyman has worked with international organizations to improve digital transformation strategies and data-gathering strategies that help identify customer touchpoints and sources of data that tell the story of what is happening. With his expertise in blockchain, digital transformation, marketing, analytics insights, startup businesses, and effective communications, Peyman is dedicated to helping businesses succeed in the digital age. He believes that technology can be used as a tool for positive change in the world.