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Mutual Funds

TD Bank and CIBC Bank

Rohan Kommu

John Gulluru


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Mutual Funds: A mutual fund is an investment that pools money from many individuals and invests it

according to the fund's stated objectives. It can also be defined as an investment programme funded by

different investors in exchange to bonds or stocks to be brought in return of a company.

Mutual Funds of TD:

Money Market Funds:

Fund Type ROI(1Yr) Fund Asset Min. InitialInvestment

Risk Min. RegularInvestment Plan

T Bills 0.40 $141.40 million asof Mar.31,2013

$100 LOW $25

TD US Money Market ($US) 0.06 699.50 million asof Mar.31,2013

$100 Low $25

Recommended for short to long term investors who are interested in monthly interest andminimum capital risk.

Investors in this Fund should be willing to accept a very low level of risk. Minimum capital risk and exposure to the US dollar. Individuals with middle and higher income level groups can invest in these funds.

Income Funds:


Risk Min. RegularInvestment Pla

Short Term Income Funds 2.1 $3323.49 million asof Mar. 31, 2013

$100 MEDIUM $25

TD Canadian Bond 3.4 $11249.39 million asof Mar. 31, 2013

$100 LOW $25

Recommended for short to medium term investors who are seeking monthly income fromconservative investments.

Contribution of the income component of a diversified portfolio.


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Investors in this Fund should be willing to accept a low level of risk. Expecting a regular income stream. Individuals with a middle income level and also retired individuals can invest in these funds.

Growth Funds:


Risk Min. RegularInvestment Pla

TD Canadian Equity Fund 1.4 $2596.85 million asof Mar. 31, 2013

$100 MODERATE $25

TD Dividend Growth Fund 11.0 $5470.91 million asof Mar. 31, 2013

$100 MODERATE $25

Recommended for Investors both short and long term seeking exposure to some foreignequities.

Investors who are more interested in growth than income can invest in these funds. The level of Risk associated is moderate. People who have lump sum amount can make returns of these funds.

T Bills

Performance

1mo 3mo 6mo 1yr 2yrs 3yrs 5yrs 10yrs YTD SI*

0.03 0.08 0.17 0.34 0.35 0.30 0.51 1.42 0.05 2.88

TD US Money Market ($US)

Performance


0.00 0.01 0.02 0.06 0.06 0.06 0.37 1.35 0.01 3.15


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Short Term Income Funds

Performance


0.6 0.6 1.1 2.1 2.7 2.3 3.6 3.7 0.5 5.5

TD Canadian Bond

Performance


0.9 -0.0 1.0 3.4 6.1 5.4 5.7 5.5 0.1 7.6

TD Canadian Equity Fund

Performance


1.6 6.2 10.8 1.4 -4.7 4.0 -0.5 9.5 4.2 8.2

TD Dividend Growth Fund

Performance


2.5 7.8 12.2 11.0 3.8 8.0 3.8 9.4 5.5 9.7


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Mutual Funds of CIBC

Savings Funds (CIBC)

Name Of Mutual Fund Return(1

year)

Fund Assets Min Initial

Investment

Min Regular

Invest Plan

Risk

CIBC Canadian T-Bill Fund 0.5 656,503,204 500 25 Low

CIBC Money Market Fund 0.7

1,676,517,501

500 25 Low

Income Funds

Name Of Mutual Fund Return(1year)

Fund Assets Min InitialInvestment

Min RegularInvest Plan

Risk

Short Term Income Fund 1.7 365,258,753 500 25 Low

CIBC Canadian Bond Fund 0.7

2,862,795,515

500 25 Low

Growth Funds

Name Of Mutual Fund Return(1year)

Fund Assets Min InitialInvestment

Min RegularInvest Plan

Risk

CIBC Balance Fund 4.4 478,611,963 500 25 Low to

Medium

CIBC Canadian Equity Fund 2.2

322,176,947

500 25 Medium

Savings Funds:

Yields (%) as

of:April 3, 2013

Rates of Return (%)* as of:March 31, 2013

Curren

t

Yield

**

Effectiv

e

Yield **

1

mth

6

mt

hs

1

yr

3

yrs

5

yrs

10

yrs

Since

Inception

Inception

Date


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CIBC Canadian T-Bill Fund - ClassA Units

0.53 0.53 0.0 0.3 0.5 0.5 - - 0.5 05/08

CIBC Money Market Fund - ClassA Units

0.68 0.68 0.1 0.3 0.7 0.6 0.8 1.6 3.7 11/88

Income Funds Rates:

Current Prices as of:April 3, 2013Previous Prices as of:April 2, 2013


Income Funds Current

Price $

Previous

Price $

Change

$

1

mth

6

mths

1

yr

3

yrs

5

yrs

10

yrs

Since

Inception

Inception

Date

CIBC Short-Term Income Fund 11.9557 11.9515 0.0042 0.1 0.6 2.0 2.5 2.5 2.9 6.4 12/74

CIBC Canadian Bond Fund 14.1441 14.1087 0.0354 0.5 1.3 5.0 6.3 5.5 5.3 6.9 12/87

Growth Funds Rates:

Current Prices as of:April 3, 2013Previous Prices as of:April 2, 2013


Growth Funds Current

Price $

Previous

Price $

Change $ 1

mth

6

mths

1

yr

3

yrs

5

yrs

10

yrs

Since

Inception

Inception

Date

CIBC Balanced Fund 17.4112 17.5525 -0.1413 -0.2 4.8 4.4 4.1 2.2 5.3 6.0 12/87

CIBC U.S. Equity Fund 10.3536 10.4819 -0.1283 1.4 6.3 5.1 9.9 3.4 5.7 1.2 09/06

Savings Fund Analysis

T-Bills Funds

As we know that most of the saving type of funds are low in terms of risk. If you want a moresecure investment with low investment risk and you are looking for a short-term investment.

We can see that CIBC bank and TD bank have a same type of mutual funds called as T-BillMutual Funds

The minimum initial investment for CIBC is $500 whereas minimum initial investment for TDBank is $100.TD Bank in this scenario has a competitive advantage because the investor who is

new into the market and who has an average income would invest in TD Bank

In general investing in T-Bills Mutual funds is considered to be low in risk and both the mutualfunds are low in risk
https://www.cibc.com/ca/mutual-funds/no-load-savings/can-t-bill-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/can-t-bill-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/can-t-bill-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/money-market-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/money-market-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-income/short-term-income-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-income/can-bond-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-growth/balanced-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-growth/discip-us-equity-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-growth/discip-us-equity-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-growth/balanced-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-income/can-bond-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-income/short-term-income-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/money-market-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/money-market-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/can-t-bill-fund.htmlhttps://www.cibc.com/ca/mutual-funds/no-load-savings/can-t-bill-fund.html


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The investor would prefer to invest in CIBC T-bill Funds as he would achieve a higher rate ofreturn in this type of mutual fund.

Consider that the investor wants to invest in a 3 year T Bill Mutual Fund. The investor wouldprefer CIBC TBill because this would give him higher return.

If the investor is looking for long term type of investment say 10 years; TD Bank would be betterbecause this has proved a certain rate of return in long term.

Canadian Money Market Mutual Funds

Comparing the same type of Money Market Mutual Funds of TD Bank and CIBC Bank. The minimum initial investment for CIBC is $500 whereas minimum initial investment for TD

Bank is $100.TD Bank in this scenario has a competitive advantage because the investor who is

new into the market and who has an average income would invest in TD Bank

Except the above factor , TD Bank has an edge in all the other factors

The rate of return in terms of short term investing i.e. investing for 1 year in Money MarketMutual Funds in CIBC Mutual Funds is more. The investor would get a return of 0.7% when

compared to 0.34% in TD Money Market Mutual Funds.

In terms of long term investing, TD Mutual Funds would be a better option because the returnrate is 4.11 compared to 3.77 in CIBC Money Mutual Funds.

Income Fund Analysis

Short Term Income Funds

Income Fund investment is considered to be a medium term investment. Compared to SavingsFunds these investments distribute interest income and offer a higher potential return.

The minimum initial investment in CIBC Short Term Income Funds is $500 whereas theminimum initial investment in TD Short Term Income Funds is $100.

The Short Term Income Funds are considered to be slightly riskier when compared to SavingsMutual Funds.

The rate of return in terms of short term investing i.e. investing for 1 year in Short Term IncomeMutual Funds in TD Mutual Funds is more. The investor would get a return of 2.2% when

compared to 2.1% in CIBC Short Term Mutual Funds.

In terms of long term investing i.e. 5 years , TD Short Term Income Funds will achieve a rate ofreturn of 3.5 which is higher when compared to CIBC Short Term Income Funds


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The net asset value of TD is more when compared to that of CIBC.TD Dividend Growth Fund

Comparing TDs Dividend growth fund with that of CIBSs Balance funds. The risk associated with both the investments is not high or low, it is medium. Thus any kind of investor can invest their funds in this type of mutual fund. From the above tables the we can clearly see that TD has a higher return on the investment which

is 11.0 when compared with CIBC whose return on investment is 4.4.

When considered in a long run also TD has a higher return on the investment of 9.4 whencompared to that of CIBC which is 5.3.

Thus investment of Funds in TD is a best option rather than CIBC.

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