What are your top three considerations when choosing a fund?

What are your top three considerations when choosing a fund?


Derek Clouthier
This article appears in the March 2021 issue of Advisor’s Edge
Prem Malik, advisor, Queensbury Securities, Toronto
First is strong, consistent performance in the category. The performance should be due to a proven and consistent buy-and-sell discipline and to active management — not to a closet index manager.
Next, I look for a trustworthy company with a solid reputation. It’s important to make sure there is proven credibility to the company and it has a solid team of analysts supporting the fund manager and their team.
Lastly, fees. I want to make sure the manager is earning the fee he or she is charging. I’ll be honest: I don’t look for the cheapest fund provider. Based on my No. 1 criteria of strong performance, a reasonable comparative fee works for me. However, if the fee is excessive, I will most likely find a replacement fund.

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