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Discussion Starter · #1 ·

I'm looking at
Meritas Growth and Income Fund qtrade(dot)ca/_pdfs/oceanrock/regulatory/Meritas_FFD_GandI_Series_F.pdf
and the
Meritas Monthly Dividend Income fund qtrade(dot)ca/_pdfs/oceanrock/regulatory/Meritas_FFD_MDI_Series_F.pdf

The Meritas Monthly Dividend Income fund provides a $0.03 per share monthly distribution based off of dividends (not Return of Capital). I reinvest these into the fund using a DRIP. This ends up being about a 3.6% annual dividend.

On the other hand the Meritas Growth and Income fund has an annual distribution of ~0.26 per share (varies from year to year). Which is a 1.2% annual dividend.

The growth of the Monthly Dividend 5 years annualized is 10%
The growth of the Growth and Income fund 5 years annualized is also 10%
MER is the same

Based on this it makes sense to invest in the monthly dividend and income fund right? But I read that monthly distribution funds performed more poorly in relation to growth funds. So let's assume the distributions return to "normal", and the Growth fund starts returning 7% and the Monthly Dividend Income fund returns 5%. If I'm getting a higher monthly dividend distribution that I'm reinvesting monthly, even though my capital growth is lower than the growth fund, am I not getting a higher return because I have more shares over the months? I can't figure out how to calculate the growth difference.

Any advice is greatly appreciated.
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