Quietly These New Mutual Fund Rules Take Effect in Canada

July 23rd, 2016 Posted in ETFs|Mutual Funds

Canada New Mutual Fund Rules

Canada’s New Mutual Fund Rules

Starting May 30, new mutual fund rules came into place that most mutual fund investors were not aware of. Any investment advisers and institutions selling mutual funds are required to give their clients a document known as Fund Facts before the sale or transaction happens.

This paper or document called Fund Facts should clearly show information about the mutual funds in a simple way such as funds’ investment objectives, managers, historical performance, and most importantly all the fees associated with the funds.

In the past, this information was available online at the fund companies’ websites and it was made available to the investors after the sale had gone through. However, the information was not presented in a clear manner easily understood.

However, under the new rules, investors will have precise and related information at their disposal and this will help them make better decisions.

Author/Copyright: Ahmed Dawn www.adawnjournal.com

The Fund Fact document is a two-page, double-sided document that does not take long to read. If you want, you can have this document long before meeting your advisers by going online or calling the fund company to mail it or fax it to you. This is all free.

Mutual funds in Canada have been known to have one of the highest fees compared to other countries and trends continue to switch from mutual funds to ETFs, which have much lower fees and transparent features that are easy to understand and easier to transact.

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