|
|
Management Fees
Mutual fund managers receive annual fees for their services relating to research, analysis, security selection and portfolio monitoring. These annual fees are calculated as a percentage of fund assets and generally vary between 1% and 3%.
This percentage depends on the complexity of the portfolio and on the market its assets are invested in. Management fees for equity funds are higher than for money market funds.
Moreover, within the category of equity funds, specialty funds and international funds often carry higher management fees than a traditional Canadian or US equity fund.
Similarly, multimanager funds normally charge higher fees.
Other costs could be added to the management fees:
 | front-end loads at the time of purchase, which are generally commissions paid to a broker;
|
| back-end loads at the time of sale. Back-end loads are regressive, that is, they decrease over time such that after a certain number of years, they are eliminated. |
Desjardins Funds as well as those of the major Canadian banks carry no front- or back-end loads.
|
