Hey guys,
I'm a newbie in investing. Started reading books on the subject 2 months ago.
I'm 26, just finished paying off my student loans last year and built up about $9000 extra in my bank account to invest with.
I'm going to Scotiabank next week to open a TFSA, which I want to invest into an index-type fund to match market growth.
I have quite a few questions even after trying my best to read what's out there, but I didn't want to ask them at the bank, knowing people there will be biased. My friends and family don't know much either unfortunately.. which takes me here seeking help.
So here goes..
-what's the difference between an index fund and an ETF, and which is better for a new investor?
-I saw that the Vanguard funds have a MER much lower than the MER of indexes with popular banks (0.09 versus 0.99 for Scotiabank). Are there inherent disadvantages or hidden fees to using Vanguard versus a bank (and also, why would anyone be dumb enough to take an index fund with a MER of 0.99 versus one with 0.09 if the cheaper one doesn't have hidden disadvantages??)
-Are there index funds beside the bank-advertised ones and Vanguard that are better? I don't know much about what's out there unfortunately.
-After I open a TFSA account, how would I go about investing in a fund that's not part of my bank?
Thanks so much in advance!
I'm a newbie in investing. Started reading books on the subject 2 months ago.
I'm 26, just finished paying off my student loans last year and built up about $9000 extra in my bank account to invest with.
I'm going to Scotiabank next week to open a TFSA, which I want to invest into an index-type fund to match market growth.
I have quite a few questions even after trying my best to read what's out there, but I didn't want to ask them at the bank, knowing people there will be biased. My friends and family don't know much either unfortunately.. which takes me here seeking help.
So here goes..
-what's the difference between an index fund and an ETF, and which is better for a new investor?
-I saw that the Vanguard funds have a MER much lower than the MER of indexes with popular banks (0.09 versus 0.99 for Scotiabank). Are there inherent disadvantages or hidden fees to using Vanguard versus a bank (and also, why would anyone be dumb enough to take an index fund with a MER of 0.99 versus one with 0.09 if the cheaper one doesn't have hidden disadvantages??)
-Are there index funds beside the bank-advertised ones and Vanguard that are better? I don't know much about what's out there unfortunately.
-After I open a TFSA account, how would I go about investing in a fund that's not part of my bank?
Thanks so much in advance!
