Your investing questions, our clear answers.

Our response:

All mutual funds have fees and expenses that reduce your investment return. There are different types of fees and expenses. For example: sales charges, other transaction fees, account fees and fund expenses. When you mention “early trading fee”, you may be referring to “front-end load” or “initial sales charge”. Front-end load fees and “deferred sales charge” (also known as “back-end load”) are both types of sales charges.

Front-end load fees are paid at the time you buy your units or shares. This is a percentage of the amount you are investing in a fund. It is paid to the registered firm that sells you the fund. You can negotiate this fee with your advisor. Deferred sales charges are paid at the time you sell your units or shares.  You will pay less if you hold the fund longer.

For more detailed information about these fees, read about mutual fund fees on GetSmarterAboutMoney.ca. Learn more about the Report on charges and other compensation. Speak to your  registered financial advisor for information about fees specific to your investments.