episode: 94

Happy Birthday! The Mutual Fund Structure Turns 100

May 7, 2024

listen now

How Mutual Funds Helped Shape Investment History

Join us as we celebrate 100 years of mutual fund history, reflecting on how they’ve helped shape investor access to the markets.

Keith and Marcelo discuss the journey of mutual funds (MF) from a niche product created in 1924 to a mainstay in the investment world, examining both the benefits and challenges they present for today’s investors.

They highlight mutual funds’ ability to provide diversified exposure to various markets, easy access to foreign investments, and convenience in buying and selling shares.

They also tackle the downsides of mutual funds head-on: high fees, lack of transparency, and sales-driven practices from big banks and others that plague the industry. Despite the availability of lower-cost alternatives like ETFs and other low fee MFs, Canadians continue to be pulled to high-fee MFs. Why?

Keith and Marcelo remain optimistic about the future, pointing to an increasing availability of low-fee investment options and the growing demand for independent, evidence-based financial advice.

Explore the pivotal moments in mutual fund history and gain insights into how understanding this history can benefit your investment strategy today.

Thank you for tuning in!

Benefits and Challenges of Mutual Funds

  • The historical significance and impact of mutual funds on investing (00:39)

  • Overview of mutual fund benefits, including diversification and accessibility (01:15)

  • Mutual funds’ role in the democratization of financial markets (03:22)

  • High fees associated with Canadian mutual funds and transparency issues (05:15)

  • Evolution of mutual funds and the introduction of ETFs (07:30)

  • The shift from defined benefit pensions to defined contributions (09:45)

  • Canadian vs. U.S. investment trends in mutual funds and ETFs (11:05)

  • Discussion on mutual fund fee structures in Canada (13:18)

  • The changing landscape of investing and the rise of passive strategies (15:30)

  • Long-term trends and future for mutual funds (18:25)

  • Summary of key takeaways and the importance of informed investing (20:40)

  • Adoption of Vanguard’s ETF Portfolio and Shift Towards Passive Investing in Canada (22:18)

And so much more!

Mentioned in this Episode:

Meet your hosts

Keith Matthews

Keith Matthews

Partner & Portfolio Manager

Marcelo Taboada

Marcelo Taboada

Associate Portfolio Manager

Lawrence Greenberg

Lawrence Greenberg

Associate Portfolio Manager

Jackson Matthews

Jackson Matthews

Associate Portfolio Manager

Thanks for Listening!

Be sure to subscribe on AppleGoogleSpotify, or wherever you get your podcasts. And feel free to drop us a line at lawrence@tma-invest.com or 514-695-0096 ext.112 Follow Tulett, Matthews & Associates on social media on LinkedInFacebook, and more! Follow The Empowered Investor on FacebookLinkedIn, and Instagram

Dive Deeper: Related Episodes

Essential  Financial Strategies for Entrepreneurs
Essential Financial Strategies for Entrepreneurs

How can entrepreneurs effectively plan and accumulate wealth? Join us as we dive into key financial strategies for entrepreneurs, including optimizing tax savings, protecting assets, and setting up holding companies for legal and tax benefits.

read more
Raising Money Smart Kids is the Wisest Investment
Raising Money Smart Kids is the Wisest Investment

As parents, we all want to set our kids up for financial success. But how do you teach them about money in a way that sticks? We sit down with Robin Taub, CPA and author of “The Wisest Investment,” to get her expert advice on instilling money smarts from an early age.

read more

Stay on top of your financial education

Subcribe and follow to get updates on important wealth management topics.