ING Direct Canada Orange Key

I was a bit curious about the mutual funds that ING Direct used to offer after writing my previous post about their Streetwise funds. So I decided to ask them what happened to them.

Well, it turns out that if you currently are an owner of any of these funds you're in luck. You can still continue to invest in them as you had before, but of course you still have to call them to make any changes as well most likely a sales pitch about the Streetwise fund and why you should switch.

So if you are new to investing with ING Mutual funds, then I'm sorry to say that you cannot invest in their old portfolio. But I suspect it just as likely that you were unaware that there was a different list to choose from anyway. Add to my previously stated fact that I think the Streetwise funds are better for beginner investers anyway so I don't think there's any harm done. As well let's be honest if you are a more advanced investor you're looking for a company that lets you do online trades with better support then what ING has to offer anyway.

Overall, I think it was a great decision on the ING's part to eliminate the old scheme and replace it with the three tier system they have now.

For those of you interested this is the sales pitch I received from ING Direct:

We no longer offer third party funds to our new clients. Only those clients that currently have third party funds with us can invest from our list of those funds. The Streetwise Fund is our simple one fund solution. It is the only fund available to our new clients since January 2008.
Please consider the Streetwise Fund. The Streetwise Fund is a diversified and balanced index fund. Research indicates to us that 80% of fund managers that try to outperform the market have not been able to consistently do so in the long-run. Therefore, why not go with the market? Instead of trying to outperform the markets, the Streetwise Fund goes with the market by replicating indices. The Streetwise Fund replicates indices for Canadian Bonds, Canadian Equities, U.S. Equities, and International Equities.

The average Management Expense Ratio for balanced funds in the market is 2.6% approximately. The Streetwise Fund is passively managed and therefore has a low Management Expense Ratio of only 1%. There are therefore more dollars left in your fund to work for you. There are no loads, and no commissions to buy or sell.

As with all mutual funds, there is no guarantee of the principal or the returns. There is an element of risk. Investing in a diversified fund for the long-term gives a client the potential of outperforming interest bearing accounts.