(NC)-Mutual funds are the most common way most Canadians are invested in the stock market. But did you know that Canadians pay the highest fees in the world for mutual funds? The average Canadian balanced fund takes 2.6% from its investors every single year - whether or not the fund makes money. Consider the benefits of investing in funds with lower fees, such as the index-based Streetwise Funds at ING Direct which charge a 1% management expense ratio (MER).
Simple math shows that on an investment portfolio worth $50,000, invested for 20 years with a market return of 8%, you could save almost $25,000 in fees and generate $50,000 more in total growth by investing in a fund with a 1% MER verses the average 2.6%.
You can't control the market, but you can control the fees you pay to invest in it.