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Mutual Funds



Frequently asked questions

  • What are mutual funds, and how do they work?
    Good question! A mutual fund is a pool of investments that’s managed by a professional. Your money is grouped with folks who have similar goals. Your mutual fund may invest in stocks, bonds, cash, other mutual funds or exchange traded funds. Mutual funds are an easy way to invest in a professionally managed, diverse portfolio with a low minimum investment.
  • Where can I find information about a mutual fund’s returns, fees and minimum investment?
    We’ve made it easy to find out everything you need to know about our mutual funds. Our Mutual Funds List lets you see prices, performance and fees for all our funds at a glance, with handy features to help you find what you’re after quickly. If you’re looking for more detailed information, every fund has a Fund Facts document which you can download as a PDF. Simply click on the name of a fund in the list, and look for the “Related Links / Downloads” section on the next page.
  • What is the minimum amount I can invest in a mutual fund?
    You don’t need a lot of money to start investing in mutual funds. For example, you can invest in a BMO SelectTrust® Portfolio with as little as $500.
  • How do I invest in mutual funds?
    To get started investing in mutual funds, you have to do is book an appointment online to meet with a BMO investment professional at your local branch. If you prefer, you can call 1-800-665-7700 to do it over the phone. If you’re already a BMO customer, you can log into Online Banking and open a TFSA, or purchase mutual funds for an existing investment account.
  • What is an index fund? Is it different from a mutual fund?
    An index fund can be a mutual fund. There are also Exchange Traded Funds (ETFs) that track an index. In either case, an index fund is designed to match the performance of a stock market index (like the S&P/TSX Composite Index, for example) by holding a portfolio of investments that represent the ones that index tracks. This is sometimes called “passive investing,” because the investments in the fund aren’t actively managed to influence their performance. They’re just selected according to what a particular index is based on.
  • What are the different types of mutual funds?
    There are lots of different kinds of mutual funds, each created to meet the goals of a particular type of investor. A mutual fund can be defined by what type of investments it holds, and what its potential return is. BMO Mutual Fund options include Security Funds, Equity Growth Funds, Income Funds, U.S. Dollar Funds, Growth Funds and Managed Programs.

    You can see the full list here. To learn more about which options are right for you, you can talk to a BMO investment specialist at your local branch, or call the BMO Investment Centre at 1-800-665-7700.
  • What’s the difference between stocks and mutual funds?
    The simplest way to look at it is that a stock is a small piece of a single company, and a mutual fund contains many different stocks, bonds, cash or even other funds. When you buy shares (stocks) in a company, you’re buying a fraction of that company. When you purchase mutual funds, you’re investing in a bit of everything in the fund.
  • What does it cost to invest in mutual funds? What is an MER?
    There are some costs associated with mutual funds —management fees, service fees, taxes and other operating expenses. They’re deducted before your returns are calculated, so you aren’t charged separately.Management Expense Ratios (MERs) on Canadian mutual funds are typically below 3%. You can find all the fees associated with any BMO Mutual Fund in its Fund Facts document.

A woman in her thirties holds a notebook and a pen and smiles as she looks thoughtfully out a window.A woman in her thirties holds a notebook and a pen and smiles as she looks thoughtfully out a window.

Mutual funds basics

What are mutual funds, and are they right for you? Here’s a quick introduction.
Learn the basics

Start investing with Mutual funds

Existing BMO Customers
If you have an investment account, sign in to purchase mutual funds
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Commissions, trailing commissions, management fees and expenses may be associated with mutual fund investments. Please read the fund facts or prospectus before investing. BMO Mutual Funds are offered by BMO Investments Inc., a financial services firm and separate entity from Bank of Montreal. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated.
® “BMO (M-bar roundel symbol)” is a registered trademark of Bank of Montreal, used under license.