Best Mutual Funds in Canada
What You Should Know
- Most banks and financial institutions in Canada offer various types of mutual funds to invest in.
- Mutual funds are managed by financial professionals and offer diversified investment solutions to retail investors.
- Best mutual funds usually have a low expense ratio (MER) and stable annual returns over a long timeframe.
Best Performing Mutual Funds In Canada
The best mutual funds in Canada do not usually have the highest return because the mutual funds with the highest returns are usually very risky. Best-performing mutual funds may have a very high return on investment in the current year that may be followed by large losses in the next year. The best way to assess the best-performing mutual funds is through annualized returns over 5 to 10-year periods. This helps identify mutual funds with consistently high returns.
The following table shows the best-performing mutual funds with consistent returns over 5 to 10 years.
| Mutual Fund Name | Series | Currency | Category | Annualized Returns | |||
|---|---|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year | 10-Year | ||||
| Fidelity Technology Innovators | F | CAD | Sector Equity | 40.48% | 12.48% | 22.87% | 22.09% |
| B | 38.91% | 11.22% | 21.50% | 20.73% | |||
| A | 38.55% | 10.96% | 21.25% | 20.50% | |||
| F | USD | 43.55% | 10.98% | 23.61% | 19.42% | ||
| CI Global Alpha Innovators Corporate | I | CAD | Sector Equity | 64.41% | 2.08% | 21.18% | 20.35% |
| O | 64.12% | 1.90% | 20.96% | 20.12% | |||
| CIBC Nasdaq Index | CAD | U.S. Equity | 50.90% | 11.05% | 21.20% | 19.85% | |
| Ninepoint Energy | F | CAD | Energy Equity | -4.21% | 60.42% | 30.76% | 6.07% |
| A | -5.25% | 58.50% | 29.25% | 5.02% | |||
| D | -4.20% | 55.13% | 27.97% | - | |||
| Fidelity Global Innovators | F | CAD | Global Equity | 46.69% | 2.41% | 24.24% | - |
| F | USD | 49.89% | 1.05% | 24.98% | - | ||
| S8 | 48.22% | -0.07% | 23.62% | - | |||
| Canoe Energy Portfolio | F | CAD | Energy Equity | 9.27% | 44.73% | 12.28% | 2.32% |
| A | 8.07% | 43.19% | 11.09% | 1.24% | |||
| Canoe Energy Income Portfolio | F | CAD | Energy Equity | 6.87% | 37.74% | 9.13% | 1.79% |
| A | 5.70% | 36.25% | 7.94% | 0.68% | |||
| CI Global Energy Corporate | I | CAD | Energy Equity | 1.42% | 35.98% | - | - |
| O | 1.26% | 35.91% | 16.66% | - | |||
| PP | 1.26% | 35.90% | - | - | |||
Source: FunData. Updated on January 22, 2024.
TD Mutual Funds
TD Asset Management (TDAM) Inc. is a subsidiary of the Toronto-Dominion Bank. TDAM has created and is managing a sizable family of mutual funds. If you are already a TD customer, using their mutual funds would be very convenient as you would have access to your investments by the same means you access your banking accounts. Having your personal and investment banking under the same umbrella makes it very convenient to set up a pre-authorized purchase plan for investment in mutual funds from your chequing account.
Best TD Mutual Funds
| Index Fund Name | Annualized Return | |||
|---|---|---|---|---|
1-Year | 3-Year | 5-Year | 10-Year | |
| TD Science & Technology Fund | 53.1% | -9.01% | 9.64% | 14.43% |
| TD Nasdaq® Index Fund | 51.24% | 7.75% | 19.6% | 15.52% |
| TD U.S. Capital Reinvestment Fund | 44.08% | 2.34% | 11.06% | 12.91% |
| TD Global Entertainment & Communications Fund | 33.71% | -3.97% | 10.11% | 11.8% |
| TD U.S. Index Fund | 23.65% | 9.81% | 14.14% | 13.6% |
| TD U.S. Equity Pool | 23.24% | 4.96% | - | - |
| TD U.S. Quantitative Equity Fund | 17.7% | 12.72% | 15.09% | 13.43% |
| TD U.S. Mid-Cap Growth Fund | 15.47% | 1.49% | 9.17% | 11.2% |
| TD Dow Jones Industrial Average Index Fund | 12.34% | 9.51% | 10.43% | 12.14% |
| TD Health Sciences Fund | -0.95% | -0.07% | 8.31% | 11.54% |
Source: TD Mutual Funds. Updated on January 22, 2024.
RBC Mutual Funds
RBC Global Asset Management (RBC GAM) is a subsidiary of the Royal Bank of Canada, which offers a very diverse family of mutual funds. Currently, RBC GAM and its affiliates offer 365 mutual funds. Generally, the Management Expense Ratio (MER) should include all expenses except trading costs and load. Some funds, particularly those issued by RBC GAM, exclude management fees from MER. The reason is that institutional investors can negotiate with RBC over their management fees.
Best RBC Mutual Funds
| Fund name | Fund Series | Asset type | Expense Ratio | Annualized Returns | |||
|---|---|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year | 10-Year | ||||
| Low Risk Funds | |||||||
| PH&N High Yield Bond Fund | O | Fixed Income Funds | 0.03% | 9.00% | 3.40% | 5.10% | 5.40% |
| F | 0.88% | 8.10% | 2.50% | 4.20% | 4.50% | ||
| D | 0.86% | 8.10% | 2.50% | 4.30% | 4.50% | ||
| A | 1.43% | 7.50% | 2.00% | 3.70% | 4.00% | ||
| RBC Managed Payout Solution | F | Managed Payout Solutions | 0.74% | 9.00% | 2.50% | 5.10% | 4.40% |
| A | 1.62% | 8.00% | 1.60% | 4.10% | 3.50% | ||
| RBC Strategic Income Bond Fund | O | Fixed Income Funds | 0.07% | 9.70% | -0.70% | 3.00% | 4.60% |
| F | 0.93% | 8.70% | -1.60% | 2.20% | 3.70% | ||
| D | 1.06% | 8.60% | -1.70% | 2.00% | 3.50% | ||
| A | 1.77% | 7.80% | -2.40% | 1.30% | 2.80% | ||
| Medium Risk Funds | |||||||
| RBC Life Science and Technology Fund | F | U.S. Equity Funds | 0.94% | 38.90% | 11.00% | 17.90% | 17.30% |
| D | 1.19% | 38.60% | 10.70% | 17.60% | 17.00% | ||
| A | 2.05% | 37.40% | 9.80% | 16.60% | 15.90% | ||
| RBC Private U.S. Growth Equity Pool | O | U.S. Equity Funds | 0.08% | 32.00% | 3.90% | 14.60% | 14.90% |
| F | 1.19% | 30.60% | 2.80% | 13.40% | 13.60% | ||
| RBC Private U.S. Large-Cap Core Equity Pool | O | U.S. Equity Funds | 0.03% | 23.50% | 11.50% | 15.00% | 14.10% |
| F | 0.76% | 22.60% | 10.70% | 14.20% | 13.30% | ||
| RBC QUBE U.S. Equity Fund | O | U.S. Equity Funds | 0.02% | 24.30% | 12.70% | 15.00% | 14.50% |
| High Risk Funds | |||||||
| RBC Global Energy Fund | O | Global Equity Funds | 0.02% | -0.70% | 29.90% | 13.00% | 3.60% |
| F | 0.99% | -1.70% | 28.70% | 11.90% | 3.40% | ||
| D | 1.24% | -1.90% | 28.40% | 11.60% | 2.50% | ||
| A | 2.08% | -2.70% | 27.30% | 10.70% | 1.00% | ||
| RBC Canadian Small & Mid-Cap Resources Fund | O | Canadian Equity Funds | 0.02% | 5.40% | 25.70% | 15.90% | - |
| F | 0.94% | 4.50% | 24.60% | 14.80% | - | ||
| D | 1.20% | 4.20% | 24.20% | 14.50% | - | ||
| A | 2.04% | 3.30% | 23.20% | 13.60% | - | ||
| RBC Global Resources Fund | O | Global Equity Funds | 0.02% | 3.40% | 16.80% | 12.90% | 7.20% |
| F | 0.98% | 2.40% | 15.60% | 11.80% | 6.20% | ||
| D | 1.24% | 2.10% | 15.30% | 11.50% | 5.90% | ||
| A | 2.09% | 1.30% | 14.40% | 10.60% | 5.00% | ||
Source: RBC Mutual Funds. Updated on January 22, 2024.
BMO Mutual Funds
Bank of Montreal Global Asset Management (BMO GAM) offers a selection of over 100 mutual funds.
If you have a credit card, a chequing account, or a savings account with BMO, you can conveniently invest and manage mutual funds with the same app. With your personal banking and investment fund set up with BMO, you can easily set up a pre-authorized purchase plan for investment in mutual funds from your chequing account.
Best BMO Mutual Funds
| Index Fund Name | MER | Annualized Return | |||
|---|---|---|---|---|---|
1-Year | 3-Year | 5-Year | 10-Year | ||
| BMO US Equity Plus Fund (US$) | 2.21% | 29.84% | 8.75% | 14.24% | - |
| BMO U.S. Equity Fund (US$) | 2.49% | 25.51% | 10.61% | 12.83% | 9.01% |
| BMO U.S. Dollar Equity Index Fund | 0.98% | 24.6% | 8.62% | 14.13% | 10.47% |
| BMO U.S. Equity Plus | 2.21% | 23.66% | 9.2% | 12.93% | - |
| BMO U.S. Equity ETF Fund | 0.99% | 23.05% | 7.59% | 12.75% | 9.67% |
| BMO Multi-Factor Equity Fund | 1.86% | 21.33% | 11.39% | 12.89% | - |
| BMO U.S. Equity Fund | 2.49% | 21.32% | 9.41% | 10.52% | 10.63% |
| BMO Growth Opportunities Fund | 2.24% | 14.46% | 4.23% | 10.76% | - |
| BMO U.S. Small Cap Fund | 1.91% | 13.21% | 11.57% | 12.03% | - |
Source: BMO Mutual Funds. Updated on January 22, 2024.
CIBC Mutual Funds
CIBC Securities Inc. is a Canadian Imperial Bank of Commerce subsidiary that offers mutual funds, among other investment products. CIBC also offers a “managed portfolio,” a fund of funds investing in other CIBC mutual funds.
CIBC funds are divided into savings, income, and growth funds. Some of the most successful funds from each category are presented below.
CIBC Savings Mutual Funds
| Index Fund Name | Series | Annualized Return | |||
|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year | 10-Year | ||
| CIBC Canadian T-Bill Fund | A | 4.41% | 1.98% | 1.55% | 1.00% |
| F | 4.53% | 2.05% | - | - | |
| F-Premium | 4.55% | 2.06% | - | - | |
| Premium | 4.46% | 2.01% | 1.59% | 1.06% | |
| CIBC Money Market Fund | A | 4.81% | 2.20% | 1.68% | 1.12% |
| F | 4.96% | 2.28% | - | - | |
| F-Premium | 5.14% | 2.37% | - | - | |
| Premium | 4.98% | 2.28% | 1.84% | 1.36% | |
| CIBC U.S. Dollar Money Market Fund | A | 5.22% | 2.32% | 1.98% | 1.40% |
| F | 5.35% | 2.38% | - | - | |
| F-Premium | 5.42% | 2.42% | - | - | |
| Premium | 5.32% | 2.37% | 2.03% | 1.45% | |
CIBC Income Mutual Funds
| Index Fund Name | Series | Annualized Return | |||
|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year | 10-Year | ||
| CIBC Canadian Bond Fund | A | 6.26% | -3.73% | 0.58% | 1.59% |
| F | 7.10% | -3.03% | - | - | |
| Premium | 6.92% | -3.07% | 1.33% | 2.40% | |
| F-Premium | 7.34% | -2.69% | - | - | |
| CIBC Global Bond Fund | A | 5.50% | -4.42% | -1.53% | 1.59% |
| F | 6.14% | -3.77% | - | - | |
| CIBC Global Monthly Income Fund | A | 7.43% | 2.43% | 4.94% | 4.88% |
| F | 8.59% | 3.54% | - | - | |
| CIBC Monthly Income Fund | A | 8.14% | 2.71% | 6.06% | 4.32% |
| F | 9.06% | 3.58% | - | - | |
| CIBC Short-Term Income Fund | A | 4.54% | -0.88% | 0.83% | 0.71% |
| F | 5.36% | -0.16% | - | - | |
| Premium | 5.03% | -0.36% | 1.40% | 1.40% | |
| F-Premium | 5.46% | -0.01% | - | - | |
CIBC Growth Mutual Funds
| Index Fund Name | Series | Currency | Annualized Return | |||
|---|---|---|---|---|---|---|
| 1-Year | 3-Year | 5-Year | 10-Year | |||
| CIBC Financial Companies Fund | A | CAD | 7.79% | 7.39% | 7.65% | 6.38% |
| F | 9.03% | 8.54% | - | - | ||
| CIBC Global Technology Fund | A | CAD | 30.30% | 2.08% | 16.28% | 16.16% |
| F | 31.91% | 3.30% | - | - | ||
| A | USD | 33.15% | 0.73% | 16.97% | 13.63% | |
| F | 34.79% | 1.93% | - | - | ||
| CIBC International Equity Fund | A | CAD | 14.13% | 4.39% | 11.03% | 7.45% |
| F | 15.41% | 5.85% | - | - | ||
| CIBC U.S. Equity Fund | A | CAD | 16.40% | 6.83% | 11.96% | 12.16% |
| F | 17.72% | 8.05% | - | - | ||
| A | USD | 18.95% | 5.41% | 12.63% | 9.71% | |
| F | 20.30% | 6.61% | - | - | ||
| CIBC U.S. Small Companies Fund | A | CAD | 19.74% | 3.56% | 11.44% | 8.92% |
| F | 21.13% | 4.84% | - | - | ||
| A | USD | 22.36% | 2.19% | 12.11% | 6.55% | |
| F | 23.78% | 3.45% | - | - | ||
Source: CIBC Mutual Funds. Updated on January 22, 2024.
Are Mutual Funds a Good Investment?
Mutual funds in Canada can be a good investment type for retail investors seeking diversified and professionally managed investment products. Mutual funds can be a great option for tax-free investment accounts as the investor does not control the trades but is taxed based on them. It is important to understand mutual funds and how they work to judge whether it is worth investing in them in your case.
Mutual Funds and Taxes
Mutual funds are often set up as partnerships. As a result, even if you do not cash any of your investment during the year, you face tax obligations because of your share in securities sold by your mutual fund. It is best to make your mutual fund investments under a tax shelter. Some tax shelters are specifically designed for a specific saving goal; they include a Registered Retirement Savings Plan, a Registered Education Savings Plan, and a Tax-Free First Home Savings Account. There is also the Tax-Free Savings Account, a general-purpose tax-sheltered account.
Disclaimer:
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