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Wednesday, July 8, 2009

ING Direct Streetwise Mutual Funds

Some time ago ING Direct Canada started offering Mutual funds as a part of their investment offerings. What was nice about this is they had a reasonable mutual fund portfolio to choose from. What was no nice was that you had to call ING Mutual Funds every time you wanted to make any changes to your holdings. Additionally every time you would call they would ask you to update you "risk" portfolio which in my opinion has absolutely no value and only takes up time making changes. I would have appreciated the ability to change and rebalance automatically or online but that was not available.

Fortunately since then ING has started offering a new series of "Streetwise" mutual funds. These funds are simply investments in different index to different degrees depending on which of the three you pick.

Streetwise Income Fund
  • 70% Bond Index
  • 10% Canadian Stock Index
  • 10% US Stock Index
  • 10% International Stock Index
Streetwise Balanced Fund
  • 40% Bond Index
  • 20% Canadian Stock Index
  • 20% US Stock Index
  • 20% International Stock Index
Streetwise Growth Fund
  • 25% Bond Index
  • 25% Canadian Stock Index
  • 25% US Stock Index
  • 25% International Stock Index
Further explaination of the funds


Personally I think this is a very good option for someone just starting out with investing (ie less then $50,000 in investments) because:
  1. No buying or selling fees
  2. Low minimum initial investment
  3. Invests only in indexes keeping the managment fees low (currently 0.8%)
  4. Great diversity in one fund
There are quite a few index funds out there but to my knowledge none that are provide the diversity found in these. And of course statistically indexes outperform most manage funds in the long run especially considering the increased management funds involved.

For those of you interested in reading the actual prospectus you can get it here:
Prospectus

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