Mutual funds are a familiar choice for many Canadian investors, offering a straightforward way to diversify their portfolios. With over 5,000 mutual funds in Canada, selecting the right one can be a daunting task. This list of the top 10 mutual funds in Canada for 2023 serves as a starting point to navigate the Canadian mutual fund landscape.
A mutual fund pools funds from multiple investors to purchase a diversified portfolio of investment assets. These actively managed funds are offered by financial institutions and provide an accessible way for investors to access a variety of assets.
While mutual funds don’t trade on stock exchanges,
you can purchase them through most Canadian brokerages. Look for brokerages with lower commission fees to minimize costs when investing in mutual funds.
Mutual funds offer a straightforward and accessible investment option, particularly for those who prefer a hands-off approach. While they come with higher fees than ETFs, many mutual funds have demonstrated strong historical performance, making them a suitable choice for investors seeking ease of access and portfolio stability.
In 2022, the RBC Global Energy Fund Series F stood out as one of the best-performing mutual funds in Canada, delivering a remarkable return of 48.18% for the year, particularly as an energy-focused fund.
While both mutual funds and ETFs offer diversified portfolios, they differ in their management styles. Mutual funds are often actively managed and come with higher fees, while ETFs are typically passively managed, offering lower MERs. ETFs trade on stock exchanges, allowing for more flexibility in trading compared to mutual funds.
To select the top mutual funds for this list, we considered factors such as historical performance, risk levels, asset types, and MERs. These funds were chosen to provide a diverse range of investment options catering to various investment strategies and risk profiles. Remember that individual financial goals and preferences should guide your investment choices.
Two top dividend mutual funds in Canada are the RBC Canadian Dividend Fund A and the CI Canadian Dividend Fund Series F.
For RRSP investments, consider lower-risk options like the Invesco Select Balanced Fund Series F, which offers a balanced portfolio with both stocks and bonds.
RBC Global Asset Management stands as one of the leading choices for mutual fund investments, with the RBC Canadian Dividend Fund A being one of the largest mutual funds in Canada.
In 2022, the RBC Global Energy Fund Series F was among the best-performing energy-focused mutual funds in Canada.
RBC offers a range of mutual funds, with the RBC Canadian Dividend Fund A being one of the largest. The RBC Canadian Equity Income Fund Series F is also a popular choice.
TD Asset Management provides various mutual funds. Consider the TD Dividend Growth Fund and the TD Retirement Conservative Portfolio, both with substantial assets under management.
