CanadianCapitalist· Premium Member
He might be talking about some mutual funds which are sold with deferred sales commissions -- you have to hold the fund for a certain number of years to avoid them. But these charges are called DSC, not TER.Hi All
New to the forum after stumbling upon Canadian Capitalist and Million Dollar Journey blogs. Ideal timing as their is some much to read and learn but I also have the realities of a six month old taking much of my time. It's a good job she's cute.
Anyway my wife and I had recently signed up to a group RESP provider as initially I had thought it was how things were done, being relatively new to Canada. I find big prospectuses and lots of terms and conditions a little concerning and again had little time and less inclination to read through ever detail. I decided to google what I could and now I'm here. I'm thinking of moving to a TD e-fund and when I cancelled the group plan (within 60 day so hopefully I won't get stung) the rep and I talked a bit about bank RESPs.
The only fees I had picked up about with the e-fund series is the low MER but I also had TER and possible termination fees throw in from the rep.
Is there a TER fee on the e-funds? I tried searching for info but didn't find any. It leads me to think their aren't any but thought I'd ask to be sure.
I understand that I only have to keep the money in the funds 90 days before withdrawing it to avoid any fees. Would that fee be classed as a termination fee? The rep mentioned that you usually had to have your money in a mutual fund for 4 years to avoid these.
Any other thoughts or comments please. I was planning to get the branch part of the e-fund done soon so I could do to get this cleared up.
TER usually refers to Total Expense Ratio -- the sum of MER and trading commissions. With index funds, TER is typically extremely low. That's the beauty really of these funds -- a very low total cost of ownership.
I personally own e-Series funds and I can assure you that apart from the 90 day holding rule, there are no other fees or commissions. It is self-interest of course but I find it ironic that a salesperson selling such a fee-laden product is concerned about the fees that others charge!