Mutual Funds

Q: How do I invest in BMO Mutual Funds?

You may choose to purchase BMO Mutual Funds through a Financial Advisor. A Financial Advisor is a person who is a representative of a Dealer, is registered with the securities authorities, handles the public’s orders to buy and sell securities and usually charges a commission for that service.

Q: What are the different types of mutual funds?

There are lots of different kinds of mutual funds, each created to meet the goals of a particular type of investor. BMO Mutual Fund options include Security Funds, Equity Growth Funds, Income Funds, U.S. Dollar Funds, Growth Funds and other options. You can access the full mutual fund list here: https://www.bmogam.com/ca-en/products/mutual-funds/fund-list/

Q: What are mutual funds?

Mutual Funds are a pool of investors’ money invested on their behalf by a professional money manager in various securities. Mutual funds primarily invest in three broad types of asset classes: cash, stocks, and bonds, although alternative asset classes, such as derivatives, real estate or infrastructure, are becoming more commonplace.

BMO GAM offers a comprehensive suite of mutual funds to meet the evolving needs of Canadian investors.

Opportunity to access a wide variety of asset classes, regions and sectors
Expertly researched and managed by teams of investment professionals
Building blocks to use as stand-alone investments or as part of a portfolio
Accessible due to low investment minimums and use in registered accounts

Mutual funds spotlight

BMO Strategic Equity Yield Fund

The power of Structured Notes recreated in a BMO Mutual Fund.

BMO ETF Portfolios

The six risk-differentiated portfolios provide cost-effective broad-market exposure.

BMO’s extensive mutual funds line-up

Whatever your investment goals, you can find a fund to suit your needs among our BMO Mutual Funds line up.

Fixed-Income

These funds invest in fixed income securities from various segments of the market

Enhanced Income

These funds invest in high dividend paying stocks and/or use option writing strategies to generate income

Low-Volatility

These funds focus on investing in equities with lower volatility than the market

Growth

These funds invest in equities to achieve long-term growth potential

ETF-Based

These funds invest in, or replicate, an existing exchange traded fund

Benefits of investing in BMO mutual funds

A fund for any need

Access to investment opportunities around the world, across various sectors, asset classes and regions.
You can use our mutual funds as an all- in-one solution, or a building block for your portfolio.

Diversification

Depending on the fund mandate, your investments are spread across securities, sectors, geographies and/or currencies

Professional Management

Investment decisions are made by investment professionals, following rigorous research into markets and securities

Ease of access

You may access mutual funds from an initial investment of $500 and subsequent contributions of $50
You can access your money when you need it
Available for registered investment plans (series dependent)

Start investing with us

Financial advisors, please contact your regional wholesalers, or call us on 1-800-668-7327

If you are an investor, please speak to your financial advisor about including one or more of our mutual funds in your portfolio.

Mutual funds FAQs

What are the costs associated with mutual funds?

The cost of owning a fund is known as the Management Expense Ratio (MER) and includes all the costs of running the fund. MER includes the management fee, operating expenses and applicable taxes. The MER varies by fund and by series.

Each fund may also be subject to a Trading Expense Ratio (TER). The TER represents the costs each fund spends on brokerage commissions for buying and selling the underlying investments.

The MER and TER for each fund at the series level can be found on the most recently filed fund facts.

How do I invest in BMO Mutual Funds?

What is the minimum amount required to invest with BMO Mutual Funds?

For all accounts, except a RRIF account, the minimum initial investment is $500, and minimum subsequent investment is $50. For a RRIF account, the minimum initial investment is $5,000.

For purchases of US Dollar funds, payment must be made in US currency.

If you set up a Continuous Savings Plan (CSP), the minimum initial investment is $50 a month for all accounts.

How are mutual fund distributions taxed?

If you hold your investments in a registered account, generally neither you nor your registered plan is subject to tax on distributions.

If you hold you investments in a non-registered account, distributions will be subject to tax whether they are received in cash or reinvested in additional securities.

Generally, tax implications for mutual fund distributions are as follows:

Dividends – generally treated as ordinary income and taxed at your marginal tax rate. However, where a mutual fund pays a distribution out of dividends received from Canadian companies, the investor can treat the distribution as if it were a dividend from a Canadian company. For investors who are Canadian resident individuals, this means that the distribution qualifies for the lower effective tax rate applicable to dividends from Canadian companies.
Interest and Other Income – generally treated as ordinary income and taxed at your marginal tax rate.
Capital Gains – if a mutual fund pays a distribution out of its net realized capital gains, an investor can usually treat the distribution as if it were a capital gain realized by the investor. Half of such a capital gain distribution has to be included in the investor’s income.
Foreign Income and Foreign Tax Paid – if a mutual fund pays distributions out of income earned from foreign investments, an investor that pays Canadian tax may be able to claim a foreign tax credit for foreign tax paid by the mutual fund.
Return of Capital (ROC) – this type of distribution is generally not taxable, but will decrease the adjusted cost base (ACB) of the securities. When the investor disposes of the securities, the lower ACB will increase the capital gain (or decrease the capital loss) that would otherwise result.

Are mutual funds a safe investment?

Any investment comes with risk. Before you buy a mutual fund (or mutual fund portfolio) you should make sure that it matches your goals and risk tolerance. There are more conservative mutual funds that try to minimize risk, growth-focussed mutual funds that try to maximize your return and a variety of different options in between.

Mutual funds are often considered safer than other investments because instead of only being tied to one asset (like a specific stock) they contain a pool of different investments. This is called diversification of risk.

What are the different types of mutual funds?

What are mutual funds?

Product FAQS

How does this investment work?

Can I invest from outside Canada?

What is the minimum investment?

Disclaimers

BMO Global Asset Management is a brand name under which BMO Asset Management Inc. and BMO Investments Inc. operate. Certain of the products and services offered under the brand name, BMO Global Asset Management, are designed specifically for various categories of investors in Canada and may not be available to all investors. Products and services are only offered to investors in Canada in accordance with applicable laws and regulatory requirements.

Commissions, trailing commissions, management fees and expenses (if applicable) all may be associated with mutual fund investments and the use of an asset allocation service. Please read the fund facts or prospectus of the mutual funds in which investment may be made before investing, including mutual fund investments under an asset allocation service. In case of BMO Money Market Fund note that mutual fund securities are not covered by the Canada Deposit Insurance Corporation or by any other government deposit insurer. There can be no assurances that the Fund will be able to maintain its net asset value per security at a constant amount or that the full amount of your investment in the fund will be returned to you. Mutual funds are not guaranteed, their values change frequently and past performance may not be repeated. Distributions are not guaranteed and are subject to change and/or elimination.

For a summary of the risks of an investment in BMO Mutual Funds, please see the specific risks set out in the prospectus.

BMO Mutual Funds are managed by BMO Investments Inc., which is an investment fund manager and a separate legal entity from Bank of Montreal.

^®/™Registered trademarks/trademark of Bank of Montreal, used under licence.