MacIntyre Financial Blog

Mutual_Fund_Investing_-_Image.PNG

Mutual fund investing: There’s a fee for that?  |  Jan 9, 2017

A management expense ratio (MER) is the total* fee you will pay to invest in a standard series mutual fund. It’s important to note that you do not pay the MER directly; rather it’s paid by the fund itself, which reduces the value of your investment accordingly.

How your money gets split out in an MER

You invest $10,000 in a standard series of a typical Canadian balanced fund with an MER of 2.5 per cent. Through the fund you pay a total of $250 in fees for the year, which may be broken out as follows:

  • $121 for the professional management of the fund and fund operating expenses
  • $29 for taxes
  • $100 fund dealer commission for administration compliance and oversight provided by the fund dealer, of which a portion goes to investment representatives for the services provided to clients, including financial advice and overhead expenses incurred by the firms providing those services.

What matters to you, matters to us.

We want to meet you

Contact us to book a consultation.

Contact Us
Bonny Vandertogt

Never have I felt more comfortable and secure with any Financial Advisor than I have...
... more

Brian and Helen Kirkwood

My wife Helen and I have known Shelley for several years. Shelley has always had our...
... more

Sheila and Lloyd Kellett

We would definitely recommend Shelley for all your financial security advice. Over...
... more

Jocelyn and Travis Mountenay

From the first time we met with Shelley and the team at MacIntyre Financial we knew...
... more

Sherry and Rob Barker

Shelley and her team are amazing to deal with! My family has been dealing with Shelley...
... more

Bob and Brenda Fisher

Our family has been with Freedom 55 Financial since the early 1980’s. For many years we...
... more