FAQ

How do investment fund companies get paid?

Investment fund companies get paid by charging a fee to each fund for the management of that fund. These fees are called MER (Management Expense Ratio). These fees go to pay all the costs of the company that is running the fund, including paying the advisors who are servicing your account.

These fees range from under 2% and up to over 4% per year depending on the fund type, whether it is a Canadian fund or a Global fund, or whether it is a Guaranteed fund (called Segregated funds). For example, if you see on your statement that you made 8% return for the year on your fund, in essence the fund made 10% but paid a 2% fee for its management.

Share our thoughts on our blog Directing Wealth