20 Best Performing Mutual Funds in Canada 2022

The ongoing impact of the pandemic, the Russia-Ukraine war and the resultant inflation are causing a significant exodus out of mutual funds.

As the Bank of Canada reduces money flow and increases its benchmark rates, asset value decreases. This directly impacts the returns of mutual funds in favour of short-term securities such as savings accounts and GICs.

However, lessons over the past decades have taught us how mutual funds outperform fixed-income securities amidst a stable economy.

Even though this is a challenging time for investing in mutual funds, some funds are worth considering for the high potential for long-term capital growth.

Here we shall take a detailed view of some of the best-performing mutual funds in Canada that withstand the current market condition to provide competitive returns.

Table of Contents

20 Best Performing Mutual Funds in Canada

With over 5,000 mutual funds in Canada, choosing the best one could be challenging essentially for beginners.

Fortunately, I have done the hard job for you by identifying the best performing mutual funds in Canada across different fund types and risk levels.

While some mutual funds have relatively lower returns, they compete significantly with funds within their asset classes.

Based on the selection criteria, you will notice that some of the popular mutual funds in Canada are not included in this compilation.

In no particular order, below are the best-performing mutual funds in Canada.

1. Ninepoint Energy Fund (Series A)

Inception date: April 15, 2004
Minimum investment: $500
Management fee: 1.50%
MER: –
1-year return: 117.79%
3-year return: 65.78%
5-year return: 24.15%
10-year return: 7.71%
Since inception: 7.56%
Risk level: High

The Ninepoint Energy Fund (A) is an energy sector fund founded in 2004 to provide long-term capital growth using equity and equity-related securities.

The fund invests most of its funds in the Canadian market and has the following sector allocations:

86.81% on oil & gas exploration & production
7.65% on cash & cash equivalents
5.54% on integrated oil & gas

Even though the Ninepoint Energy Fund (A) has a high-risk level, it’s August 2022 returns are highly competitive.

2. Ninepoint Global Real Estate (Series F)

Inception date: August 05, 2015
Minimum investment: $500
Management fee: 1.00%
MER: –
1-year return: -10.33%
3-year return: 3.79%
5-year return: 6.77%
10-year return: –
Since inception: 7.71%
Risk level: Medium

The Ninepoint Global Real Estate Fund (F) is a real estate investment trust (REIT) that was launched in 2015 to provide capital appreciation.

As of the time of writing, the fund invests 74.66% in the US markets and 15.52% in the Canadian market. It also has the following sector allocations as of August 31, 2022:

36.3% on specialized REITs
20.45% on industrial REITs
14.77% on Residential REITs
11.96% on Retail REITs
9.83% on cash and cash equivalents
3.64% on real estate services
3.01% on office REITs

3. Purpose Real Estate Income (F)

Inception date: April 29, 2014
Minimum investment: –
Management fee: 0.65%
MER: 0.80%
1-year return: -16.03%
3-year return: -1.61%
5-year return: 3.95%
10-year return: –
Since inception: 3.66%
Risk level: Medium

The Purpose Real Estate Income (F) is another real estate investment trust that was established to provide capital growth and tax-efﬁcient income.

The fund invests in selected North American real estate equities through the following allocations:

33.22% on residential equities
16.85% on industrial equities
11.57% specialized: equities
9.83% on retail equities
8.84% on real estate operating companies
6.93% on health care
5.91% on health care facilities
2.16% on diversified equities
2.1% on office
1.28% on environmental & facilities services
1.32% on cash

Compared to other mutual funds on this list, the Purpose Real Estate Income (F) has a relatively low management fee and MER.

4. Purpose Canadian Preferred Share F

Inception date: August 24, 2007
Minimum investment: –
Management fee: 0.75%
MER: 0.93%
1-year return: -14.28%
3-year return: 7.48%
5-year return: 0.88%
10-year return: –
Since inception: 1.20%
Risk level: Low to medium

Are you looking to earn tax-efﬁcient income? The Purpose Canadian Preferred Share (F) is worth considering.

This is a currency hedged fund with over $115 million in assets under management. The fund has the following sector allocations as of the time of writing:

49.57% on financials
25.05% on energy
20.87% on utilities
2.16% on industrials
0.98% on materials
0.58% on real estate
0.78% on cash

5. RBC Retirement 2020 Portfolio

Inception date: November 10, 2016
Minimum investment: $500
Management fee: 0.70%
MER: 0.81%
1-year return: -8.9%
3-year return: 2.7%
5-year return: 4.2%
10-year return: –
Since inception: 4.4%
Risk level: Low

The RBC Retirement 2020 Portfolio could be your best option if you’ve low-risk tolerance and are looking to gain exposure to fixed income and equity securities in your retirement savings.

This fund offers easy access to a diversified portfolio for medium-to-long term investing. As of the time of writing, the fund has the following asset allocation:

38.1% on equity
61.9% on fixed income

6. Fidelity Global Value Long/Short Fund (Series B)

Inception date: October 16, 2020
Minimum investment: $500
Management fee: –
MER: 2.71%
1-year return: 57.49%
3-year return: N/A
5-year return: N/A
10-year return: N/A
Since inception: 25.97%
Risk level: High

This is a relatively new mutual fund that was launched in 2020 to offer exposure to global long and short-term equity securities

Even though the fund is new, it has a competitive 1-year return and since inception return that made up for its high-risk level.

7. Leith Wheeler US Small/Mid cap (Series B)

Inception date: October 31, 2016
Minimum investment: $25,000
Management fee: –
MER: 1.32%
1-year return: -6.2%
3-year return: 8.3%
5-year return: 10.5%
10-year return: N/A
Since inception: N/A
Risk level: Medium-High

The Leith Wheeler US Small/Mid Cap (B) fund provides exposure to small and mid-size companies in the US. In addition, the fund invests across different markets and securities as shown in its current allocations below:

85.3% on US equity
11.8% on cash & short-term investments
3% on Canadian equity

The drawback of the Leith Wheeler US Small/Mid Cap (B) fund lies in its high minimum investment requirement. Nevertheless, it has a competitive return compared to similar fund types.

8. Rise Properties Trust (F)

Inception date: March 15, 2012
Minimum investment: –
Management fee: 1%
MER: –
1-year return: 26.18%
3-year return: 13.98%
5-year return: 13.85%
10-year return: N/A
Since inception: 14.34%
Risk level: –

The Rise Properties Trust (F) is a real estate investment trust that specializes in acquiring US underperforming rental communities.

With $3.1 billion in assets under management, the Rise Properties Trust (F) offered competitive returns since its inception in 2012.

9. RBC $U.S. Money Market Fund (Series O)

Inception date: January 3, 2005
Minimum investment: Variable
Management fee: –
MER: 0.02%
1-year return: 0.69%
3-year return: 0.83%
5-year return: 1.40%
10-year return: 0.95%
Since inception: 1.64%
Risk level: Low

Are you looking for a short-term income in USD with low fees? Consider the RBC $U.S Money Fund (Series O).

This fund invests in short-term debt securities that are traded in USD so as to provide short-term income. The following are the allocations of the fund since March 31, 2022:

75.6% on commercial paper
12.8% on provincial obligations
8.7% on bankers’ acceptances and bank obligations
2.9% on federal obligations

Besides having a low management expense ratio, the RBC $U.S Money Fund (Series O) also has competitive returns as per its asset class.

10. BMO Low Volatility U.S. Equity Fund

Inception date: August 17, 2020
Minimum investment: $500
Management fee: 1.25%
MER: 1.53%
1-year return: 7.61%
3-year return: N/A
5-year return: N/A
10-year return: N/A
Since inception: 9.50%
Risk level: Low to medium

The BMO Low Volatility U.S. Equity Fund is a relatively new mutual fund founded on August 17, 2020.

This fund seeks to provide equity growth through a diversified portfolio of low-volatility U.S. equities. As of August 31, 2022, the fund has the following assets allocation.

99.6% on equity
0.4% on cash
0.1% on others

11. TD Precious Metals Fund (F)

Inception date: September 6, 2006
Minimum investment: $500
Management fee: –
MER: 1.11%
1-year return: -18.13%
3-year return: -4.20%
5-year return: 1.83%
10-year return: -1.72%
Since inception: -0.21%
Risk level: High

The TD Precious Metals Fund (Series F) was launched in 2006 to provide long-term capital growth. To this end, the fund invests in gold, platinum, silver, deposit receipts and certificates.

In addition, the fund also invests in companies that explore, mine and produce precious metals and stones.

As of the time of writing, the TD Precious Metals Fund (F) has the following asset mix:

70.90% on Canadian equity
14.30% on US equity
14.30% on international equity
0.60% on cash and equivalents

While the fund’s returns didn’t measure up to its risk level, the fund competes significantly with other precious metals funds in Canada.

12. CI Preferred Share Fund (I)

Inception date: December 21, 2015
Minimum investment: $500
Management fee: 1.15%
MER: 1.48%
1-year return: -5.5%
3-year return: 8.2%
5-year return: 3.4%
10-year return: N/A
Since inception: 5.1%
Risk level: Low to medium

Are you looking for medium-long-term capital growth through a core preferred equity portfolio? The CI Preferred Share Fund (I) was designed for investors like you.

The following is the diversified allocation mix of the fund as of August 2022:

84.88% on Canadian equity
7.28% on Canadian corporate bonds
2.01% on cash and equivalents
1.84% on international equity
1.84% on US equity
1.12% on income trust units
1.03% on foreign corporate bonds

With competitive returns, you can earn long-term capital growth with this fund at a low-medium risk level.

13. CIBC Precious Metals Fund (A)

Inception date: July 25, 1996
Minimum investment: $500
Management fee: –
MER: –
1-year return: -21.1%
3-year return: –4.8%
5-year return: 0.7%
10-year return: -4.2%
Since inception: 0.7%
Risk level: High

The CIBC Precious Metals Fund (A) has been around since 1996, and it’s one of the best funds that provide competitive returns in Canada.

The fund seeks to provide long-term capital growth by investing in Canadian companies that are involved in the precious metals sector (directly or indirectly).

Even though this fund has relatively low returns compared to other mutual funds on this compilation, it competes significantly with other precious metals funds in Canada.

14. Middlefield Global Agriculture F

Inception date: June 17, 2011
Minimum investment: $500
Management fee: 1.00%
MER: –
1-year return: 5.86%
3-year return: 8.92%
5-year return: 6.62%
10-year return: 8.32%
Since inception: 7.39%
Risk level: Medium

If you’re looking for long-term capital growth through the agriculture and food industries, the Middlefield Global Agriculture (F) fund could be your best option.

The fund has over $13 million in net assets, and it invests more in the US than in Canada.

As per its last distribution, Middlefield Global Agriculture (F) offered competitive 1-10-year returns to investors.

15. Canoe Asset Allocation Portfolio F

Inception date: February 2011
Minimum investment: 2,500
Management fee: 1.10%
MER: 1.29%
1-year return: 4.9%
3-year return: 11.9%
5-year return: 8.9%
10-year return: 8.5%
Since inception: 6.2%
Risk level: Low to medium

The Canoe Asset Allocation Portfolio (Series F) uses a balanced investment approach to provide long-term capital growth and appreciation

To this end, the fund invests more on equity and fixed income securities as shown in its current asset allocation below:

33.7 on Canadian equity
27.1% on US equity
22.3% on Canadian fixed income
7.5% on cash & equivalents
4.4% on US fixed income
3.1% on foreign equity
0.5% on foreign fixed income
1.4% on others

Compared to similar fund types, Canoe Asset Allocation Portfolio (Series F) has had competitive returns since its inception.

16. TD U.S. Low Volatility Fund – I

Inception date: Sep 10, 2013
Minimum investment: $100
Management fee: –
MER: 2.19%
1-year return: 3.17%
3-year return: 2.64%
5-year return: 7.03%
10-year return: –
Since inception: 11.63%
Risk level: Medium

The TD U.S. Low Volatility Fund (I) is TD’s equivalent to BMO Low Volatility U.S. Equity Fund. The fund also invests in low-volatility U.S. equities towards providing long-term capital appreciation.

In addition, the TD U.S. Low Volatility Fund (I) also invests in other markets and securities as shown in its current allocations below:

98.10% on US equity
1.50% on international equity
0.40% on cash and equivalents

Besides its competitive returns, the TD U.S. Low Volatility Fund (I) also distinguished itself with a low minimum investment requirement.

17. IG Mackenzie Global Health Care F

Inception date: December 12, 2013
Minimum investment: $50
Management fee: –
MER: 1.25%
1-year return: -5.71%
3-year return: 10.82%
5-year return: 9.08%
10-year return: –
Since inception: 11.76%
Risk level: Medium

The IG Mackenzie Global Health Care (F) fund is a specialized mutual fund that provides long-term capital growth through the health care sector.

With a $50 low minimum investment requirement, the IG Mackenzie Global Health Care (F) fund is more easily compared to most of the funds on this compilation.

The fund has over $304 million in assets under management, and it offered some of the best returns compared to other health care funds in Canada.

18. Middlefield Health Care Dividend Fund F

Inception date: October 23, 2014
Minimum investment: $500
Management fee: 1.00%
MER: –
1-year return: -4.0%
3-year return: 8.4%
5-year return: 8.6%
10-year return: N/A
Since inception: 10.2%
Risk level: Medium

Are you looking to invest in a dividend-paying mutual fund in the healthcare sector? The Middlefield Health Care Dividend Fund (Series F) is there for you.

The fund seeks to provide long-term capital appreciation by investing in companies whose majority of revenue/earnings are derived from the healthcare sector.

The global exposure of the fund can be identified through the following geographic allocations:

Canada: 0.7%
US: 88.1%
International: 11.1%

With such broader diversification, the Middlefield Health Care Dividend Fund (Series F) was able to offer competitive returns since its inception.

19. Dynamic North American Dividend Private Pool (O)

Inception date: March 9, 2015
Minimum investment: $500
Management fee: 0.70%
MER: 0.94%
1-year return: 5.7%
3-year return: 10.1%
5-year return: 9.4
10-year return: N/A
Since inception: 7.5%
Risk level: Low to medium

This fund seeks to provide long-term capital appreciation by investing in North American companies that pay dividends. To achieve its objective, the fund allocates funds in the following way:

Common Stocks-CDN: 53.1%
Common Stocks-US: 39.6%
Cash, short-term securities and others: 7.3%

In addition to offering competitive returns, the Dynamic North American Dividend Private Pool (O) also distinguished itself with low fees.

20. BMO SIA Focused North American Equity (A)

Inception date: December 05, 2018
Minimum investment: $500
Management fee: –
MER: 1.90%
1-year return: 0.96%
3-year return: 4.57%
5-year return: N/A
10-year return: N/A
Since inception: 7.23%
Risk level: Medium

The last but not the least best performing mutual fund on my list is the BMO SIA Focused North American Equity (A) fund.

This fund was established in 2018 to offer long-term capital growth by investing in North American equities. As of August 31, 2022, the fund has the following allocations:

50.2% on fixed income
48.9% on equity
1.1% on cash
-0.1% on others

How to Choose the Best Performing Mutual Fund in Canada

Knowing the best-performing mutual funds in Canada is not enough. Understanding how to choose the perfect fund will help you make an informed investment decision.

As always, you want to evaluate your financial situation and risk tolerance before investing in any security. Once you understand your financial institution and risk tolerance, you can easily determine:

Your income and expenses
How much can you invest
How much can you afford to lose
How long can you invest

With this knowledge, you can compare and choose the fund that suits your risk tolerance and investment objective. To make an informed decision, consider the following factors when comparing funds that suit your situation:

Minimum investment: This may not be a problem if you’re investing a large amount. But if you’re on a low budget or investing a small amount, knowing the minimum investment will save you from disappointment.
Fees & taxes: Know the management fees, MER, commission, redemption fee and any other applicable fees and taxes. To save more on taxes on your mutual fund investing, consider investing through a registered account such as TFSA, RRSP or RESP.
Performance: The performance of mutual funds varies across fund types and risk levels. If you have a high-risk tolerance, you can go for a fund with competitive past returns. Although past returns do not guarantee future returns.
Distribution schedule: How often do you want to receive income/dividends from your investment? Is it monthly? Quarterly? Or annually? There’s a mutual fund for your desired schedule.

Verdict

The advent of exchange-traded funds (ETFs) and their rapid growth have exposed the expensive nature of mutual funds. And the pandemic is adding salt to the injury by taking many away from mutual funds.

Nevertheless, the aged-long reputation of mutual funds is maintained by funds with competitive returns. In Canada, the above 20 mutual funds have distinguished themselves as worthy instruments for achieving capital growth.

However, you shouldn’t rely on this information alone in finalizing your decision. I employ you to consult with your financial advisor before taking any practical steps.

What’s your best-performing mutual fund in Canada? Please let us know in the comment.

If you enjoy this review, kindly visit our Investing Archive for more related information about the Canadian investment industry.

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