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Mutual funds advice

zigma99

Member
Aug 25, 2008
141
13
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I have some RESP and was wondering if I should move it to primarily bonds or keep it in growth for the current scenario?
 

daywalker11

Mongerer
Dec 27, 2011
507
107
43
Toronto
Bonds are in a bubble because of government intervention and the bond universe is huge, so you might want to be a little more specific. The markets have come off their lows significantly and until there is a roadmap to get the economy back to work I would say the rally is very presumptive. When it is time to get back stick to index ETFs that use the S&P or Nasdaq 100 as a benchmark.

Stay in cash and precious metals for now. We are not through the woods by any stretch.
 

malata

RockStar
Jan 16, 2004
3,829
172
63
Paradise by the dashboard light.
I have some RESP and was wondering if I should move it to primarily bonds or keep it in growth for the current scenario?
depends on your risk tolerance and time frame. go 50/50 for now and increase your exposure in equities during the second wave

 

Goodoer

Well-known member
Feb 20, 2004
2,751
1,465
113
GTA & Thereabouts...
Lots of opinions. Mine is

1 stay away from mutual funds. They take 2% and do not match average. Indexing guarantees AVERAGE for .2 %.

2 you cannot time the market. No one can
Why? Mutual Funds were made for people who do not have enough money to buy bulk shares in specific companies. Agreed that no-one can time the market all of the time (if at all). Index Funds (especially ones indexed to the Dow, Nasdaq or TSX) will do better on average than fund managers or brokers... At least the ones that the OP will have access to (I'm assuming he's not in the elite-rich crowd).

Go self-directed with your investments: RRSP, RESP & TFSA and pick a low MER Index Fund. You'll save on fees. TD Bank, Tangerine, etc. can do this for you.
 
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