A Mutual Fund is a Terrible Decision

The Problem with Mutual Fund

Long ago, I wrote about why the typical mutual fund is hazardous to your financial health. I tallied up management expense ratios and created hypothetical investments and the costs of these expenses and fees. The graphs showed very vividly the dangers associated with paying the typical fees and expenses associated with most mutual funds. In case that post didn’t make it clear enough on why you should avoid being ignorant about your investments, I’ve searched far and wide, high and low, to find the last thing you will ever need to read on about the problem with mutual funds and investment fees. Are you ready?

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The Problem with Mutual Funds

The Problem with Mutual Funds

A friend recently told me that when he’s been searching around for financial advice online, it seemed that it was almost a universal perspective that letting one of Canada’s Big 5 banks – RBC, TD, BMO, Scotiabank, and CIBC – sell you a mutual fund is a very, very poor choice. He wondered why that was. It was especially troubling for him because his retirement savings were accumulating in a mutual fund at one of these Big 5 banks. The answer to his question is illustrated in the following series of images.

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