To really know your return on an investment, you have to factor in your costs. Your total return is what you make after you pay any fees and charges.
Common investment fees
You may have to pay fees to buy, hold or sell your investments. You may also have to pay accounts fees and fees for advice. Some common fees include:
- sales charges if you buy or sell a mutual fund
- management fees and operating expenses (known as the management expense ratio or MER) if you own a mutual fund or ETF
- trading commissions when you buy and sell a stock or an ETF
- fees for selling an investment early or transferring an investment
- account fees, such as trustee fees for registered plans and fees to close an account
- fees for the advice you receive.
You may also have to pay taxes on what your investments earn.
Your account statements will tell you about many of your costs and fees. Others may not appear on your statements. Ask your adviser or investment firm about all of the costs involved in your investments.
Content in this section is provided in partnership with Investor Education Fund, a non-profit organization founded and supported by the Ontario Securities Commission that provides unbiased and independent financial tools to help Canadians make better money decisions. To find out more, go to: GetSmarterAboutMoney.ca