Your bank says the mutual fund is "free." It isn't. Plug in your numbers and see exactly how much you're paying — in real Canadian dollars — compared to a low-fee alternative.
Enter your investment details below. Don't know your fund's MER? Check your Fund Facts document or look it up on Morningstar.ca. Most bank mutual funds charge between 1.8% and 2.5%.
Quick presets:
| Year | Your Fund Value | Low-Fee Value | Cumulative Fees Paid | Cumulative Savings |
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How this works: MER is deducted from your fund's gross return each year. A fund earning 7% gross with a 2.1% MER nets you 4.9%.
The same market return with a 0.20% MER ETF nets 6.8%. The difference compounds dramatically over time. These projections assume constant returns — real markets are volatile, but the fee drag math is directionally accurate.
RBC Select Balanced Portfolio (Series A) carries a 1.75% MER. A 35-year-old with $80,000 invested, adding $500/month, will pay roughly $185,000 in fees by age 60. Switching to XEQT at 0.20% MER — with identical market exposure — saves approximately $160,000.
A real story from r/PersonalFinanceCanada: an investor had $2 million in Series A mutual funds, paying both a 1% trailer fee to the advisor embedded in the MER and a separate 1% advisory fee. That's $40,000/year in total costs. Switching to Series F (which strips the trailer) and negotiating the advisory fee down saved over $20,000 annually.
From a Reddit user who discovered their RBC fees: "Nobody would buy their funds if they disclosed the real costs. I was paying close to $20k in mutual fund fees every year." That's not an edge case — it's a $1M portfolio at a standard bank MER. Use the calculator above with your own numbers. The result will probably make you uncomfortable.
If the calculator just showed you a number that made your stomach drop, you have options:
1. Switch to a low-fee alternative. The easiest path: open a self-directed account at Questrade or Wealthsimple, buy an all-in-one ETF like XEQT or VGRO, and transfer your existing holdings. We have a step-by-step switching guide for each major bank.
2. Ask about Series F or D. If you want to keep your advisor, ask about Series F funds — same fund, lower MER, no embedded trailer. You'll pay your advisor directly, but the total cost is usually lower. Series D is for self-directed accounts at banks.
3. Move to TD e-Series. If you want mutual funds (not ETFs) with low fees, TD's e-Series index funds charge 0.33–0.50% MER. Available through TD Direct Investing.
4. Consider a robo-advisor. Robo-advisors like Wealthsimple Invest or RBC InvestEase charge 0.40–0.65% all-in. More than DIY, less than bank funds, and they handle rebalancing for you.
Our switching guide walks you through the exact steps for RBC, TD, BMO, CIBC, and Scotia — including transfer forms, timelines, and tax implications.
Switch Guide → How MER WorksThis calculator is for educational purposes only and is not financial advice. Projections assume constant annual returns, which don't reflect real market volatility.
MER figures are approximate — verify your fund's current MER in its Fund Facts document or on SEDAR+. Actual results will vary. Consult a qualified financial advisor before making investment decisions.