The TD e-series funds are a way in which you can get a mutual fund without having to pay an arm and a leg for the MER’s. I have had a TD e-series fund for my RRSP since last year and regularly contribute a set amount to it per month. It’s a great way to employ dollar cost averaging without having to pay for trading commission fees each time you do a transaction. It’s wonderful for us young people who don’t have time to go to the bank (really, how do people do their banking regularly when they work the same hours you’re working?) and are internet savvy.
However, TD e-series are notoriously difficult to acquire, it takes a bit of time and a bit of patience to be able to set an account up, mainly because when you walk into any TD branch, no one knows what the heck you’re talking about.
The reason, I believe, that TD bank branch employees do not know what you’re talking about is because it is an e-series fund. That means that TD bank doesn’t waste their money teaching branch employees the details of the fund because it is all done online. This my friend, is where they save you the $. You don’t have to pay for the services of a Mutual Fund Specialist because there are none! The MER’s for TD e-series are low- 0.31-0.48% is the average compared to a whopping 2.5% for full service mutual funds.
It took me about 6 weeks to get my TD e-series fund in working order (long story- I think I tried to mail it in, and they told me I needed a card after I had no response for a 3 weeks, then I went into the branch and had to go back twice because no one new what I was talking about, then finally got my beloved e-series), so I’m going to try and save you the time and headache by learning from my mishaps.
So without further adieu, here’s the most hassle-free way on how you can get in on the action:
1) If you already have a mutual fund account with TD bank, you’re already one step ahead of the game.
2) If not, you need to go to your local TD bank branch and open up a mutual fund account (and don’t forget the number) and get yourself a card with an easy web login number. Remember, don’t buy any mutual funds, just open up an account. =)
3) You can then convert an existing mutual fund account (the one you just opened up) to the TD e-series account. I found it much easier and faster this way because your information (driver’s license, ID) has already been approved by someone at the branch. You get the help of a real-live person and then can convert it to the e-series later on. This method is much faster. You send some paperwork in, and a week later, you’re good to go.
4) Alternately, if you’re starting from scratch and applying online, the website will guide you through your Wealth Allocation Model (a questionnaire to determine what your asset allocation should be and determine your investor profile). The questionnaire will help you pick the funds you want to include in your portfolio. You’ll need to mail your signature so the information can be verified.
5) You’ll need to send in your application, consent form, mutual fund account number, and transaction form (if you’re planning to set up a pre-authorized purchase plan)
6) Once the account is set up and funded, you can set up your pre-authorized purchase plan (I do mine monthly) according to the percentage of asset allocation you want. I’m in love with pre-authorized purchases because it’s automatic!
If you have any questions at all about getting your e-series account, I found that the toll free number given was quite helpful (1-800-281-8029). Also because of the fund’s popularity, they recently have an online page dedicated to troubleshooting.
Do you have a TD E-Series Fund? What do you think of it?
Hey thanks for the info.
I have a TD account but haven’t invested in their mutual funds as of yet. I’m a financial consultant and manage my own investments right now. I’ll keep it in mind for the future though.
Hey, I see you’re also a member of the yakezie challenge.
Doing well?
.-= Guy G.´s last blog ..How To Manage Money Tips has joined the Yakezie Challenge! =-.
@Guy G. I think I’ve been donig well with the Yakezie challenge- without the Yakezie I would be no where~~! Ah, if you’re a financial consultant, I would think you woulnd’t need the TD efunds at all then~!! =) It’s for noobs like me =)
hi there thanks for the info! I already have a chequing and a savings account with TD and was wondering if it was possible to move money between the mutual fund account and my regular TD account online.
im currently an undergrad business student and am looking to invest a bit for the experience and for the money as well. Is there another mutual fund other than the TD e-series you recommend?
@ak yes you should be able to. You can do it all online and even set up preauthorized deductions from your accounts with your td bank login. I would recommend etfs too, a reader wrote in recommening claymore etfs where you don need to pay the trading fee.. I have to look into this more myself.
[...] Youngandthrifty.ca reports that it took him six weeks to set up an e-Series account “mainly because when you walk into any TD branch, no one knows what the heck you’re talking about.” [...]
I opened an eseries account with TD last year and it was quite painless after following the advice of a few financial blogs. I opened the Mutual Fund account in branch and later filled mailed in the conversion form on their website. Keep in mind that you also have access to eseries funds from a TDW discount brokerage account if you have one.
@Michael- Yes, I think it IS quite painless as long as you follow the steps of the financial blogs =) Learn from my mistakes =) As long as you already have a mutual fund account with TD, then you’re already halfway through the process.
[...] Youngandthrifty.ca reports that it took her six weeks to set up an e-Series account “mainly because when you walk into any TD branch, no one knows what the heck you’re talking about.” [...]
[...] You can do it yourself- Just like if you go to a yoga studio and pay $12-$15 per class, you can go to a financial advisor and pay a fee for financial advice, or pay commissions on mutual funds. Or, if you prefer to be independent and save money, you can buy a DVD for $15 and use that at home. Some people prefer to go to a yoga studio because it gives them accountability, whereas some people are very self-disciplined and can incorporate yoga into their daily lives without having to go to a class. You can choose to do it yourself by buying some ETF’s to start or start up some TD E-series funds. [...]
[...] readers wrote in about Claymore funds and told me they are as good as the TD e-series. I was like.. “whhhhaaaaa??? how can anything be beter than TD e-series?” So I did [...]
[...] and you also regularly donate in the form of a pre-authorized contribution plan (like I have for my TD e-series funds), you regularly donate to charities or pay for child care costs, you can choose to forgo the big [...]
[...] includes the pre-authorized monthly contribution into my TD E-Series account (primarily bonds), a GIC in my ING Direct Account and my new Questrade RRSP [...]
[...] in mind, I went ahead and opened up an account (or in the process of opening an account). All the blogs that teach you how to open up the account speak the truth about the difficulty of doing so. Don't [...]
[...] even teaches you how to start a TD eseries (for the Canadians who want to index invest), which is one of my personal favourite investing [...]
hi, which one of them in e-series fund did you purchase? My friend just got a Monthly Income Fund. He said he will receive interest from this mutual fund every month.
@KEVIN- Hi Kevin thanks for writing. I did the risk tolerance screener I believe and I have a majority of my efunds in bonds since its in my RRSP. I didn’t specifically pick the monthly income fund, for example. I think I have the CDN index, International Index, and CDN bonds (and something else I forgot).
[...] IMHO. For come great how-to’s, check out step-by-step instructions from Krystal and Young and Thrifty, I followed their instructions, and 3 weeks and a rejected copy of void cheque (you must use an [...]
i have converted my regular TD mutual funds account to the e-series however, i always get message “mutual funds are currently unavailable” in effect i can’t set up my pre-authorized payment plan. any help/advice about this? thanks!
Who have you tried contacting at TD? I recommend emailing their specific E-series branch as most employees there have no idea what it is (kind of scary, but really not surprising).