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How do I start investing into this energy fund?
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| StereoPrincess |
| Because gas is ing expensive. I might as well start making some money off of it. |
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| rabbitjoker |
1. Open up a investment trading account with your bank.
2. Buy their energy fund.
Usually if you buy the fund of the institution your investment account is with - you avoid load (but not MER).
One is usually required to invest a minimum of $500 or $1000 (depending on the fund) and usually the no-load requirement is that one holds the fund for a minimum period of time (check with your institution).
Any dividend/distribution that you receive can be re-invested into the fund (setup DRIP on your investment account). The dividend/distribution will be taxed as income (your regular tax rate).
When you sell the fund you will have tax liability - however it will be a capital gain which will mean taxes on the gain will be 50% of your marginal rate (50% of your regular income tax rate). |
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| rabbitjoker |
My RBC Energy - 85.41 % annualized return.
But be aware - Energy funds should not be 100% of your portfolio. They are volitile - so don't put money that one can't afford to lose into a energy or commodity fund.
For example - the same RBC Energy fund that I have be successful with this year as a history that looks like this:
1 year annualized return:
Best Period 115.6%
Worst Period -40.4%
Median Period 12.7% |
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| StereoPrincess |
what a read is that i would have invest monthly into it too?
what if i wanna just put 500 bucks down and forget about it and just reinvest the return? |
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| StereoPrincess |
| which royal bank fund do you invest in then RJ? some sort of mixed fund? |
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| rabbitjoker |
| quote: | Originally posted by StereoPrincess
what a read is that i would have invest monthly into it too? |
Only if you setup an automatic investment plan.
| quote: | Originally posted by StereoPrincess
what if i wanna just put 500 bucks down and forget about it and just reinvest the return? |
Invest the $500, make sure you account is setup for dividend/distribution re-investment and (hopefully) watch it grow. |
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| rabbitjoker |
| quote: | Originally posted by StereoPrincess
which royal bank fund do you invest in then RJ? some sort of mixed fund? |
RBC Energy fund.
After years of buying stocks & funds I've given up on picking/buying stocks - one might as well let the experts do it. There are enough specialized funds from various sources that IMO picking stocks is no longer a reasonable thing to do (each purchase requries research, continual review, analysis of quarterlies, market, etc).
Sure - I'll miss out on those "pops" that stocks have every once and a while - but I'd rather have consistent year-on-year growth than a pop once every blue moon. |
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| rabbitjoker |
Whatever or wherever one decides to invest - please make sure that the investment is appropriate for your own risk tolerance.
Do not put money that you cannot afford to lose into medium-to-high risk investments.
No sector, no stock and no fund is immune to a Bre X, Nortel or Enron. |
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| StereoPrincess |
| what is load and what is MER? |
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| rabbitjoker |
| quote: | Originally posted by StereoPrincess
what is load and what is MER? |
Load is the fee one pays relating to the purchase and sale of the fund. No load = no fee. Front end load = purchase fee paid on purcahse. Back end load = purchase fee paid on sale. You can have various combinations of loads.
MER is management expense ratio that the fund managers take on an annual basis to pay for the costs of administering the fund. If a fund returns 10% PA but the MER is 2% PA - the effective return is 8% PA. |
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| Dancing*Queen |
| Hey RJ, is an energy fund investment something you can claim at the end of the yr like a RRSP? |
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