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Topic: How To Invest

TD Canadian Equity Fund $29.13

TD CANADIAN EQUITY FUND $29.13 (CWA Rating: Conservative) (TD Asset Management, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-463-3863; Web site: www.tdcanadatrust.ca. No load — deal directly with the bank) uses a “bottom-up” approach (using fundamentals such as earnings, cash flow and low debt) to identify undervalued companies with strong growth potential.

TD Canadian Equity Fund’s 10 largest holdings are Manulife Financial, Suncor Energy, Royal Bank, EnCana, TD Bank, Petro-Canada, Rogers Communications, Bank of Nova Scotia, Falconbridge and Valero Energy.

The $2.4 billion fund currently holds about 31.8% of its portfolio in Financial services shares. It also has a bias towards Energy stocks, with 26.6% of its holdings in that sector. However, it sticks with high-quality issues with sound fundamentals, so this concentration doesn’t add a lot of risk.

Over the last 10 years, TD Canadian Equity posted a 12.1% annual rate of return. That’s better than the S&P/TSX’s return of 10.7%. The fund gained 23.4% over the past year, compared to a gain of 22.0% for the S&P/TSX. TD Canadian Equity’s MER is 2.25%.

TD Canadian Equity Fund is a buy.

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