Mutual funds remain among the most popular investment choices for Canadians, offering a wide array of advantages such as diversification, liquidity, and professional risk management, distinguishing them from exchange-traded funds (ETFs) and individual stocks.

According to the Investment Funds Institute of Canada (IFIC), mutual fund total assets achieved their second-highest monthly level on record (the highest being in December 2021) in May this year, amounting to CAD 2.058 trillion at the month-end. This increase in total assets highlights the ongoing interest and market confidence among investors. It also underscores the significant role mutual funds play in the Canadian financial landscape, potentially influencing economic indicators and investment strategies.

This article discusses some of the mutual funds in Canada that are popular among investors.

FÉRIQUE World Dividend Equity Fund

The fund aims to provide both income generation and long-term capital appreciation. It primarily invests in dividend-paying stocks and various other securities on a global basis. The fund’s maximum allocation is in the US equity (52%), with the highest sector holdings in financial services, followed by technology and consumer goods.

As of April 30, 2024, AstraZeneca PLC – ADR, Novartis AG, Microsoft Corp., Johnson & Johnson, and J.P. Morgan Chase & Co. are among the top ten holdings.

As of May 31, 2024, the fund has provided a 19.6% return over the last one year, and a return of 6.2% since its inception in December 1993.  

          Data source: FÉRIQUE website; Image Source: © 2024 Krish Capital Pty.Ltd

TD Global Equity Focused Fund

The fund maintains a focused portfolio designed to optimize diversification by geographical regions, sectors, and cash flow types. Its primary objective is long-term capital growth through significant investments in global equity securities, with the MSCI World Index serving as its benchmark.

As of May 31, 2024, the fund's portfolio shows a substantial allocation of 59.10% in the US equities. Sector-wise, it focuses on technology (25.60%), followed by consumer services (13.40%) and financial services (12.70%). Few of the notable holdings in the top ten include Microsoft Corporation, NVIDIA Corporation, Amazon.com Inc., Eli Lilly & Company, and Mastercard Inc.

Over the past year, the fund has delivered a return of approximately 30%, and its performance over the last six months reflects a return of 20.48%.

Inception date: Sep 13, 2018
Data source: TD Asset Management; Image Source: © 2024 Krish Capital Pty.Ltd

Manulife Global Dividend Fund

This fund targets companies with a focus on compounding cash flows and increasing earnings, leading to dividend growth. It predominantly invests in large-cap, stable firms that typically exhibit lower volatility during market downturns.

As of April 30 2024, the fund's top ten holdings include Microsoft Corp. Con, Sumitomo Mitsui Financial Group Inc., Samsung Electronics Co. Ltd., Philip Morris International Inc., and Apple Inc. The fund’s largest investments are in the communication services sector, followed by consumer discretionary and consumer staples.

As of May 31, 2024, the fund has delivered compound returns of 14.16% over the last six months, 13.08% year-to-date, and 23.48% over the past year. Its dividend yield stands at 1.26% at the end of May.

Inception date: Aug 01, 2014
Data source: Manulife Investment Management; Image Source: © 2024 Krish Capital Pty.Ltd

RBC Global Technology Fund

The RBC Global Technology Fund is suitable for those seeking exposure to the global information technology sector and planning to hold their investment for a long period. The fund’s maximum allocation is in the US equities (86.9%) with the information technology sector being dominant (72.8%), as of May 31 2024. NVIDIA Corp, Microsoft Corp, Apple Inc, Netflix Inc, and Mastercard Inc are among the top ten holdings.

As of May 31, 2024, the fund’s dividend yield stands at 0.4% and it has provided a return of 36.1% over the past year.

Inception date: July 02, 2002
Data source: RBC Global Asset Management; Image Source: © 2024 Krish Capital Pty.Ltd

BMO Nasdaq 100 Equity ETF Fund - Series F

The fund is suitable for investors who want exposure to US equities listed on the NASDAQ-100 index. The fund’s holding is concentrated in the BMO NASDAQ 100 Equity Index ETF with a 99.61% allocation and 0.1% allocation in cash, as of May 31, 2024. In terms of the industry, the fund’s maximum allocation is in the information technology sector with 51.9% holding followed by communication services at 15.9% holding.

As of May 31, 2024, the fund has provided around 30.81% return over the past year and around 5.27% return in the past month.

Inception date: June 01, 2021
Data source: BMO Global Asset Management; Image Source: © 2024 Krish Capital Pty.Ltd

Overall, these mutual funds exemplify decent growth, stability, and sector-specific insights, appealing to diverse investor needs. However, past performance is not indicative of future results. Investors should carefully consider their investment objectives, risk tolerance, and fees before investing.