Using a Search Engine to Find Mutual Funds part 2

Morningstar.ca‘s Mutual Fund finder has an advanced function.  This advanced search can be used to find funds that meet specific needs.  For the purpose of this article, I am going to search for:

  • All companies that are both large and middle cap.  Click on all the boxes for large and middle.
  • Share class type is DIY, Do-it-yourself, investor
  • Fixed distribution is NO

Beta can be used find funds that have a history of low or high fluctuations in price compared to the main index.  The main index is rated as 1.  Therefore, a mutual fund with a rating of less than 1 is less volatile, generally less risk.  A mutual fund with a rating of more than 1 is more volatile, generally more risk.  The lowest Beta, lowest risk mutual fund, found is -.87 for the year and the highest Beta, highest risk mutual fund, is 2.15.

For those who cannot stomach wild rides up and down with his/her money, a Beta less than 1 is preferred.

I did a check and there are no funds with a Beta of -.5.  As I go higher some mutual funds pop up.  The return is low, but this is usually what you get with minimal volatility.

A partial list of mutual funds with the lowest MER ones on top.  Since Morningstar.ca may not be accurate, it is best to go to the provider and ensure that:

  1. The mutual fund still exists
  2. The MER is what morningstar.ca says it is
  3. The mutual fund is what you want

As more people become comfortable with DIY investing, more mutual funds may cater to the DIY investors.  The list is quite limited, and I am unsure if they are still available.  In any case, educated investors may want to buy mutual funds without an advisor since some may already have the knowledge or may be getting advice from a fee-based advisor.

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