RBC Global Bond Fund D (0P0000A0F8.TO) Best 1-yr total return (Invalid Date)8.04% Worst 1-yr total return (Invalid Date)1.13% RBC D-series fund investment minimums drop to $500 No-load, low-fee mutual fund providers like Steadyhand are no doubt taking notice of RBC’s bold announcement today that it is significantly reducing the fund investment minimums for its D-series mutual funds—to $500 from $10,000. For fledgling investors just starting out, this is cause for celebration. D-series funds, which have substantially reduced trailing commissions, are designed for do-it-yourself investors who want to use actively managed funds through a discount brokerage. The savings can be considerable compared to traditional A-series funds, which typically include trailing commissions of 1% and sometimes include front-end loads (an additional commission taken off your initial investment). For example, the 2012 industry average Management Expense Ratio (MER) for a Canadian equity fund was 2.04%, while the MER for D-series units of the RBC Canadian equity fund was 1.21%. Assuming an investment of $25,000 for 15 years at a gross annual return of 8% for Canadian equity, this could offer an estimated savings of $7,397. Quite remarkably, for as little as $500 anyone can now purchase an all-in-one D-series RBC global balanced fund with an MER of 1.49%. This type of fund focuses on long-term growth and is perfect for investors with moderate risk tolerance: about 60% of the holdings are a diversified mix of Canadian, U.S. and international equities, with the remaining 40% in bonds and cash. A comparable global balanced fund by Steadyhand has an MER of 1.34% but requires investors to have a minimum account size of $10,000. Consider RBC’s $500 account minimum for individual D-series funds a huge coup for the little Canadian investor who until now has never had such easy access to inexpensive actively managed mutual funds. RBC Global Asset Management announces launch of new bond fund of funds: RBC Monthly Income Bond Fund announces launch of new bond fund of funds: RBC Monthly Income Bond Fund
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October 22 , 2020 |4 Comments
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