Investing

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TD e-Series Funds are available through a TD e-Series Funds account, which can be accessed online through TD Canada Trust EasyWeb, or through TD Waterhouse Discount Brokerage.

It's easy to build your portfolio with TD e-Series Funds to help you reach your goals. With a broad selection of TD e-Series Funds to choose from, you can build a diversified portfolio that's right for you.

TD e-Series Funds

To learn more about specific TD e-Series Funds, click on the fund from the list below:

• TD Canadian Bond Index - e
• TD Canadian Index - e
• TD Dow Jones Industrial Average^SM Index - e
• TD Dow Jones Industrial Average^SM Index ($US) - e
• TD European Index - e
• TD International Index
• TD International Index Currency Neutral
• TD Japanese Index - e
• TD Managed Index Aggressive Growth - e
• TD Managed Index Balanced Growth - e
• TD Managed Index Income - e
• TD Managed Index Income & Moderate Growth - e
• TD Managed Index Maximum Equity Growth - e
• TD Nasdaq^® Index - e
• TD U.S. Index - e
• TD U.S. Index ($US) - e
• TD U.S. Index Currency Neutral - e

Explore the benefits of investing with TD e-Series Funds today

• Call 1-866-222-3456 to speak to a TD Mutual Funds Representative with TD Investment Services Inc.
• Visit tdwaterhouse.ca/discountbrokerage
• Contact a TD Waterhouse FundSmart Mutual Fund Specialist at 1-800-461-FUND (3863)

Open a TD e-Series Account

• Establishing a new TD e-Series Funds account is easy.

  Follow these simple steps:

  1. TD e-Series Funds Understanding and Consent:

  It's important that you understand the terms and conditions of the TD e-Series Funds Understanding and Consent form.

  2. You can invest now or later:

  A Mutual Funds Representative with TD Investment Services Inc. can make your initial TD e-Series Funds account purchases, or you may wish to complete your initial investment using TD Canada Trust's EasyWeb Internet service after your TD e-Series account has been opened. If you are not currently a customer, we will require a cheque payable to TD Investment Services Inc.

  3. An original signature is required:

  Your TD e-Series Funds account will be opened after your original, signed application, and TD e-Series Funds Understanding and Consent form are received by TD Investment Services Inc. (TDIS).

  4. What happens next:

  Once we've received your completed and signed application forms, your account can be opened, and your first trade will be processed within two business days. You will receive confirmation via email with details on how to access your new TD e-Series account using EasyWeb.

  
  Download Application
  
  
  
• Want to convert an existing mutual fund account?

  It is easy to convert your TD Mutual Funds account to a TD e-Series Funds Account. Follow these simple steps below:

  1. TD e-Series Funds Understanding and Consent:

  As this is an Internet account, it is important that you understand the terms and conditions of the TD e-Series Funds Understanding and Consent form.

  2. An Original Signature is required:

  Your TD e-Series Funds account will be opened after your original, signed application, and TD e-Series Funds Understanding and Consent form are received by TD Investment Services Inc. Unfortunately, we are unable to accept applications by fax.

  3. What will happen next:

  As soon as your application has been processed, you will receive confirmation via email. The email will include detailed information on how to access your account using TD Canada Trust's EasyWeb Internet banking service

  
  Download Application
  
  
  

Management Expense Ratios (MERs)

Management Expense Ratio (MER) is a measure of the total administrative costs incurred by a mutual fund, expressed as a percentage of the fund's assets. These administrative costs include day-to-day operation of the fund and the fees paid to the fund manager for managing the investments.

The MER Difference

This table illustrates the differences in Management Expense Ratios^* (MER) for the Investor Series and e-Series units of the TD Index Funds.

Have a few questions?

We've provided answers to some of the most common questions people have about mutual funds.

• How do I begin investing in mutual funds?

  The Six Steps to Building a Financial Plan is an effective way to get started on the road toward financial peace of mind.

  Once you have a better idea of where you are now and where you want to be in the future, we recommend that you work with a TD Mutual Funds Representative to help ensure that the investments you choose provide the potential for growth, while at the same time keep your investment risk at a comfortable level.

  The TD Mutual Funds Customer Investor Profile questionnaire helps you determine an asset mix that's right for you. With the help of a Mutual Funds Representative, you can then invest in a TD Comfort Portfolio.

  You'll benefit from a diversified portfolio that reflects your personal investment needs and objectives.

  Once you've created a personalized investment portfolio, you can conveniently access your account - as well as make account transactions - anywhere, anytime.

  EasyWeb Internet Access is available 24 hours a day, seven days a week - free of charge. The cut-off time for online Mutual Funds transactions is 3 p.m. ET. Any transaction after this time will be processed as of the next valuation day.

  EasyLine, a fully automated touchtone telephone service provided by TD Canada Trust, lets you access your investment accounts 24 hours a day, seven days a week simply by calling the EasyLine toll-free number at 1-866-222-3456.

  Or simply visit any TD Canada Trust branch, where a Mutual Funds Representative with TD Investment Services Inc. can help you with all of your investment needs.

• Are mutual funds guaranteed?

  Since mutual funds qualify as securities and not deposits, they are not guaranteed, their values change frequently and past performance may not be repeated.

  However, fund managers and the funds themselves operate under strict securities regulations. For example, mutual funds are owned by the unitholders (people who own the mutual fund) and are separate legal entities from the companies that operate them. Securities legislation also requires that mutual fund assets be held in trust by a custodian on behalf of unitholders.

• What types of funds are available?

  You can choose funds that invest in money market investments such as government issued treasury bills, income investments such as bonds, or equity investments such as stocks of corporations, both domestic and international.

  Some funds are broadly diversified, while others target an asset class or a specific sector of the economy, such as international bonds or science and technology stocks. Others aim to replicate the performance of a well-known index, such as the S&P/TSX Composite Index in Canada or Standard & Poor's (S&P) 500 in the United States.

  While there are hundreds of choices, each mutual fund will fall into one of the three main asset classes: safety, income or growth. Or, you can choose a balanced fund which is actively managed to maintain a mix of various asset classes.

• How much do I need to start?

  The minimum initial investment for TD Mutual Funds is $100 for a non-registered account and $100 for an RSP account. The minimum subsequent investment is $100 for both types of accounts.

  A TD Mutual Funds Pre-Authorized Purchase Plan is a convenient and affordable way to build your savings. You can start with as little as $25 per fund per transaction and this amount can be automatically deducted from your bank account on a weekly, bi-weekly, semi-monthly, monthly, quarterly, semi-annual, or annual basis.

  Transfers between TD Mutual Funds are free, however, a 2% early redemption fee is payable to all funds except money market funds if you transfer or sell units of these funds within 30 days (90 days for TD e-Series) of purchase. This fee is designed to protect unitholders from the costs associated with other investors moving quickly in and out of the Funds.

  Frequent trading can hurt a fund's performance by forcing the portfolio manager to keep more cash in the fund than would otherwise be needed or to sell investments at an inappropriate time. It may also increase a fund's transaction costs.

• Where can I buy mutual funds?

  Mutual funds are sold through registered Mutual Funds Representatives or other registered advisors with mutual fund or securities dealers associated with banks, trust companies and insurance companies in Canada.

  At TD, you can purchase TD Mutual Funds through TD Investment Services Inc. by contacting a Mutual Funds Representative through EasyLine telephone services, EasyWeb Internet access or by visiting any TD Canada Trust branch. You can also purchase TD Mutual Funds through TD Waterhouse Discount Brokerage, Financial Planning and Private Client Services.

• What about taxes?

  Net income and net realized capital gains earned by a mutual fund are generally passed on to investors in the form of distributions. The frequency of distributions will vary depending on the mutual fund but will generally be monthly, quarterly or annually.

  You can also earn a capital gain when you sell your mutual fund or switch from one mutual fund to another at a price higher than you paid.

  The tax treatment of distributions received or capital gains realized will depend upon the type of account in which you hold the investment.

  If you hold a mutual fund in a registered plan (such as an RSP, RIF, RESP or TFSA) distributions paid by a mutual fund and any capital gains realized are generally sheltered from tax. Any amount you withdraw from a registered plan (excluding a TFSA) is generally fully taxable. Amounts withdrawn from a TFSA are not taxable.

  If you hold a mutual fund in a non-registered account, distributions paid by the mutual fund are taxable whether they are received in cash or reinvested into the mutual fund. You will receive a T3 Supplementary/Relevé 16 tax slip which will tell you the amount and type of income to report on your tax return. You must also include in your taxable income any capital gains realized from selling or switching your mutual fund. It's up to you to calculate and report the capital gains you realize on your transactions. Although an official tax slip is not required, mutual fund companies are required to report all sales or switches to Canada Revenue Agency.

• What is the difference between book value and average cost per unit?

  Book value is the original cost of purchases and reinvested distributions minus the average cost of any redemptions. Average cost per unit is used to calculate any capital gains or losses you may earn when you sell or transfer units of a fund you hold in a non-registered account. The average cost per unit is the book value of your fund divided by the number of units you hold.

• What is the difference between global and international funds?

  Technically speaking, there's a difference between a global fund and an international fund, from a North American perspective. A global fund may invest in all the markets of the world, including North America, whereas an international fund generally excludes North America.

• How do I compare different funds?

  While past performance does not guarantee future growth, annualized returns for different periods (e.g. 1-year, 3-years, 5-years, 10 years) are often used to compare funds and the quality of their management. Most major daily newspapers publish mutual funds performance tables each month for periods ranging from one month to 10 years or more.

  Comparing a fund with others in its peer group is a good way to evaluate past performance. Mutual fund tables make it easy by grouping similar funds together. The ability to consistently outperform its peers is one sign of a good-quality fund.

  To make a fair comparison, it is important to recognize that all funds in one category are not the same. For example, some Canadian equity funds are managed conservatively, while others aggressively pursue growth. One fund manager may emphasize longer-term value, while another may actively trade investment positions at different times in the market cycle. If in doubt, find out from the fund company, the simplified prospectus or the fund facts sheet, what the fund's investment objectives are and how the fund is managed. While some performance numbers can be very attractive, you may discover that the fund's investments are too risky for you.

• How does TDAM discourage market timing?

  While market timing is not illegal, our funds are designed for long-term mutual fund investors. TDAM started to charge an early redemption fee (ERF) for most TD Mutual Funds many years ago. This 2% fee is applied to investors that buy and sell units of the same fund within 30 or 90 days, thus discouraging for market timing. The amount charged by this process is paid to the fund to cover any costs or possible negative impact to the fund or its unitholders. In addition, we also retain the right to reject purchase orders from a unitholder who is conducting any activity considered detrimental to the funds or its unitholders.

  At TD Mutual Funds we are committed to protecting the best interests of our unitholders. We strive to apply the highest standard of care and diligence, and we review our current policies and practices regularly to ensure they continue to protect you and the funds.