I have been searching for an answer to this very question, thanks for having it answered!

Les,

I still use TD direct investing since I only make 1-2 trades a year and all my other accounts are there.

Thanks Barry. Super appreciate your time!

Hi Jo,

If you’re looking for monthly income, you could invest in an ETF that focuses on dividends and pays out distributions monthly. That said, dividend funds are typically only used by people who need the monthly income.

As for keeping your mutual funds. It’s almost never worth hanging onto mutual funds due to the high fees. Sure, there are times when some mutual funds may outperform the index, but you’ll never know which will do so. You’re better off going with ETFs that track the market and accept average returns. The lower fees will almost always put you ahead.

I’ve been investing in mutual funds for my registered accounts for over a decade. I’ve finally learnt more about passive index investing etc and have started to purchase ETFs I’ve researched in my Questrade registered accounts.

I’ve got a weird scenario for you though – I invested a lump sum of money in a TD Monthly Income Fund 10 yrs ago. Even with the 2% MER, I’ve almost doubled my investment. I don’t think I can do that myself with ETFs; unless I break down the assets within the mutual fund and purchase them all separately.

I guess my question is – is there ever a good option for holding onto a mutual fund even when you know the MER is 2%?!

Thanks so much!