Mutual funds are an excellent starting point for many Canadian investors, providing instant diversification and professional management. With over 5,000 mutual funds available in Canada, selecting the right one can be daunting. This blog highlights the five best mutual funds in Canada for 2025, offering strong returns, diverse portfolios, and expert management.
Why Choose Mutual Funds?
Mutual funds pool investors’ money to buy a diversified basket of assets, such as stocks, bonds, or other securities. They are professionally managed, making them ideal for investors who prefer a hands-off approach. Benefits include:
- Diversification: Reduces risk by spreading investments across asset classes.
- Professional Management: Expert fund managers handle asset allocation and security selection.
- Flexibility: Different funds cater to varying risk tolerances and investment goals.
Top 5 Mutual Funds in Canada for 2025
1. RBC Canadian Equity Income Fund F Series (RBF646)
| Metric | Value |
|---|---|
| Fund Code | RBF646 |
| Inception Date | August 28, 2006 |
| Type of Fund | Large-Cap Canadian Stocks |
| Net Assets Invested | $3.03 billion |
| MER | 0.76% |
| 10-Year Annualized Returns | 7.7% |
| Risk Level | Medium |
This fund focuses on large-cap, high-dividend-paying Canadian stocks and offers a 4.3% distribution yield. Its top holdings include Royal Bank of Canada (RY.TO), Toronto Dominion Bank (TD.TO), and Enbridge Inc (ENB.TO). With a 35.5% allocation to financials and 17.2% to energy, it is ideal for investors seeking capital growth and stable monthly distributions.
2. Canoe Global Equity Fund Series F (GOC1043)
| Metric | Value |
|---|---|
| Fund Code | GOC1043 |
| Inception Date | November 2011 |
| Type of Fund | Global Equities |
| Net Assets Invested | $1.16 billion |
| MER | 1.25% |
| 10-Year Annualized Returns | 12.4% |
| Risk Level | Moderate |
Canoe Financial’s flagship fund provides global exposure, with a 68.6% allocation to U.S. stocks and 31% to international stocks. Top holdings include Microsoft (MSFT), Alphabet (GOOG), and Moody’s Corp (MCO). Its strong track record and diversified portfolio make it suitable for growth-focused investors.
3. Mackenzie Canadian Equity F Series (MFC1453)
| Metric | Value |
|---|---|
| Fund Code | MFC1453 |
| Inception Date | May 15, 2006 |
| Type of Fund | Equities |
| Net Assets Invested | $557 million |
| MER | 0.99% |
| 10-Year Annualized Returns | 7.9% |
| Risk Level | Moderate |
This fund focuses on large-cap Canadian equities, with 33.2% of its portfolio in financial stocks. Top holdings include Royal Bank (RY.TO) and Toronto Dominion Bank (TD.TO). Its steady distribution history and strong performance make it a reliable choice for equity investors.
4. RBC Global Technology Fund (RBF620)
| Metric | Value |
|---|---|
| Fund Code | RBF620 |
| Inception Date | July 7, 2002 |
| Type of Fund | Global Technology Stocks |
| Net Assets Invested | $964.61 million |
| MER | 0.99% |
| 10-Year Annualized Returns | 18.6% |
| Risk Level | Medium |
This fund emphasizes U.S.-based technology stocks, with Alphabet, Microsoft, and NVIDIA as its largest holdings. Its long-term average annual return of 11% makes it an excellent option for investors seeking exposure to the technology sector.
5. NBI Global Equity Fund Series F (NBC767 F)
| Metric | Value |
|---|---|
| Fund Code | NBC767 F |
| Inception Date | December 24, 2013 |
| Type of Fund | Global Equities |
| Net Assets Invested | $1.69 billion |
| MER | 1.04% |
| 5-Year Annualized Returns | 13.75% |
| Risk Level | Medium |
This fund offers global exposure with a 66.07% allocation to U.S. stocks and remaining holdings across Europe, Asia, and Canada. Top holdings include Microsoft Corp (MSFT), with a focus on consumer goods and technology sectors.
Comparison Table of the Best Mutual Funds in Canada for 2025
| Fund Name | Type | 10-Year Avg. Returns | MER | Risk Level | Net Assets Invested |
|---|---|---|---|---|---|
| RBC Canadian Equity Income Fund | Large-Cap Canadian Stocks | 7.7% | 0.76% | Medium | $3.03 billion |
| Canoe Global Equity Fund | Global Equities | 12.4% | 1.25% | Moderate | $1.16 billion |
| Mackenzie Canadian Equity Fund | Equities | 7.9% | 0.99% | Moderate | $557 million |
| RBC Global Technology Fund | Global Technology Stocks | 18.6% | 0.99% | Medium | $964.61 million |
| NBI Global Equity Fund | Global Equities | 13.75% | 1.04% | Medium | $1.69 billion |
How to Choose the Right Mutual Fund
- Assess Your Goals: Are you seeking growth, income, or capital preservation?
- Evaluate Risk Tolerance: Choose funds aligned with your comfort level during market volatility.
- Consider Costs: Look for funds with competitive MERs to maximize long-term returns.
- Diversify: Balance your portfolio by including funds across various asset classes and geographies.
Are Mutual Funds a Good Investment in 2025?
Mutual funds remain a solid investment choice for Canadian investors seeking professional management and diversification. While their fees may be higher than ETFs, the ease of access and historical performance of top funds make them valuable additions to any portfolio.
By choosing from these five best mutual funds in Canada for 2025, you can align your investment strategy with your financial goals, ensuring stability, growth, and income in the years ahead.
