The Zoomer Report: High Fees
Are you paying too much in fees for your portfolio? According to a report from
the C.D. Howe institute, Canadians are losing out because of excessive fees
for underperforming mutual funds.
According to the report, the problem is that so many retail investors rely
on mutual funds — mainly stock funds — to manage their personal
Canadian mutual funds have been criticized for charging the highest fees in
the world, particularly at a time when many stock fund returns under perform
the benchmark S&P/TSX composite index.
Over the three years ended 2007, only 13.3 per cent of stock funds outperformed
the benchmark index. Given that fees usually add up to between 2 and 4 per cent
of an individual’s retirement assets a year, that takes a big chunk out
of the typical Canadian household’s savings. So before you make an investment,
pay close attention to how much it will cost.
READ MORE ZOOMER REPORTS
About The Zoomer Report
Libby Znaimer, a prominent Canadian journalist specializing in business, politics, and lifestyle issues, is producer and host of The Zoomer Report, a special feature on topics of interest to baby boomers and the 50+. It covers everything from health and wealth to leisure and volunteerism, from the special vantage point of the generation that has changed society in its wake.
Ms. Znaimer is also Vice-President of News and Information for Classical 96.3FM and AM740. Her first book, “In Cancerland – Living Well Is The Best Revenge” – was published in October 2007 by Key Porter.
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