Jim Letourneau's Blog

Investing, Technology, Travel, Geology, Music, Golf. I think that covers it.

Ever Get the Feeling You've Been Cheated?

Canadian mutual funds are well marketed and nobody would question your decision to buy one. However don’t expect any Freedom 55 from your mutual funds. Their performance is abysmal.

Unfortunately for the industry, Standard & Poors does keep a scorecard of indices versus actively managed funds (the latest is available here). According to this latest report, a mere 14% of Canadian equity funds outperformed the S&P/TSX index and 25% of US equity funds outperformed the S&P 500 index over a five- year period. Seems to me that we are a nation of mutual fund “suckers” paying more and getting less in return.

Canadian Capitalist » Mutual Fund Fee Debate: The Industry Response.