TD e-Series funds:
These funds are quite different than most bank funds as they use a different strategy (Indexing) and cost much less at 0.5% compared to the common 2%+. I cover the indexing strategy used by these funds in my cost-based investing seminar. TD e-Series funds cost less than Tangerine and Robo-Advisors, but require you to do more work. TD e-series funds costs more than the ETF approach, but can be considered more convenient by many, especially those with pre-existing TD accounts.
TD provides these mutual funds but this does not mean you can go into a TD bank and expect the financial advisors to teach you about them. Like the name suggests e-Series is more of an “internet” series of mutual funds. TD’s financial advisors possibly won’t even know what you’re talking about if you mention them! TD doesn’t spend money marketing or even training their staff about their e-series line of funds since TD earns more on their other funds. (I cover this phenomenon more in depth in my seminars)
Once you have TD account setup your account you will need to decide which funds you are going to be purchasing and also set up your pre-authorized purchase plan (this automatically purchases your funds for you). One method of fund selection is to follow a model portfolio approach. Following model portfolios blindly is not suggested because certain people will need to make adjustments depending on their situation and risk tolerance. Book a financial consultation with me to understand more about this, it will save you lots of time!
Summary of TD-eSeries:
-Suggested minimum account size of $5000
-Will need to design portfolio on your own
-Pre-authorized purchase plan is available
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