Topic: How To Invest

Would you please give me your opinion on the TD Managed Balanced Growth Fund? Thanks.

Article Excerpt

The TD Managed Balanced Growth Fund is a balanced mutual fund, holding a mixture of stocks and bonds. It holds 32% of its assets in bonds and has a 2.43% MER. We don’t generally recommend balanced funds. Bonds are unlikely to perform well over the next few years, if only because interest rates will likely hold steady or rise. That means the fund would only earn interest income on its bonds; instead of capital gains, its bond holdings could produce capital losses. TD Managed Balanced Growth Fund’s biggest holding consists of units of the TD Canadian Bond Fund (26% of assets), which mainly invests in corporate bonds (61.1% of assets). Corporate bonds are riskier than government bonds, and their risk levels vary widely. Some corporates are almost as safe as government bonds and offer only slightly higher yields. Others offer higher yields but are much riskier. We don’t recommend the TD Managed Balanced Growth Fund. Fund. …

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