I am a beginner investor and I've been out of school at this point having saved enough to seriously look at where I am investing my money.
I have decided to start off with a portfolio that is invested in 65% TD e-Series Canadian Index Fund and 35% TD e-Series Canadian Bond Index Fund.
The Canadian market is relatively stable and I feel like the financial system is a little more sound that the United States, for instance. Both of these funds have fairly done well over the long term.
I've purchased these e-Series funds through TD Canada Trust's online banking portal EasyWeb. The funds came out of a savings account and went in to a Mutual Fund TFSA (Tax Free Savings Account).
I am now looking to understand the tangible returns I will be able to receive with these.
Canadian Index Fund (distributions annually in December):
- Potential increase per unit of the fund (realized upon liquidation)
- Equity dividends?
Canadian Bond Index Fund (distributions each month end):
- Potential increase per unit of the fund (realized upon liquidation)
- Interest income?
- Dividend income?
Will these distributions be put in to my savings account (where the funds originally came out of)? Or will they be automatically re-invested?
Note: I need to bring these questions here as these funds are low cost funds and the bank isn't making as much money out of money as they'd like, they are not very open to sitting with me to discuss all of these potentially silly questions.