how to start investing in canada - what is mer in investing

Investing in Canada can seem overwhelming at first. Between stocks, real estate, and mutual funds, knowing where to start is half the challenge. One of the most important concepts for Canadian investors to grasp is the MER (Management Expense Ratio).

Info: MER stands for Management Expense Ratio — the annual fee expressed as a percentage of assets charged by investment funds. It directly reduces your returns.

Why MER Matters in Investing

MER is one of the most overlooked costs when investing in mutual funds and ETFs. Even a difference of 1% can cost tens of thousands of dollars over a lifetime.

Fund Type	Typical MER	Impact Over 20 Years
Index ETF	0.05% - 0.25%	Minimal
Active Mutual Fund	1.5% - 2.5%	Huge (can reduce final portfolio by 30%+)

Pro Tip: Always compare MERs before investing. A low MER ETF often beats high-cost active funds over the long run.

How to Start Investing in Stocks in Canada

For beginners wondering how to start investing in stocks Canada, the first step is opening a brokerage account. Platforms like Questrade or Wealthsimple Trade allow Canadians to buy ETFs and stocks with low fees.

Caution: Stock investing carries market risk. Avoid putting in money you’ll need in the short term, and diversify across sectors.

How to Start Investing in Real Estate in Canada

For those asking how to start investing in real estate Canada, options include buying rental properties, investing in REITs (Real Estate Investment Trusts), or joining real estate crowdfunding platforms.

Pro Tip: New investors can start with REIT ETFs, which provide exposure to real estate without the hassle of managing tenants or mortgages.

Tax-Advantaged Accounts: TFSA and RRSP

Canadians benefit from two key investment accounts: the Tax-Free Savings Account (TFSA) and the Registered Retirement Savings Plan (RRSP).

TFSA: Tax-free growth and withdrawals
RRSP: Tax-deferred growth and potential tax refunds

FAQs

Q: how to start investing in canada - what is mer in investing?

A: MER is the Management Expense Ratio, a key fee in Canadian investing. To start, open a TFSA or RRSP with a brokerage and choose low-cost ETFs to minimize MER.

Q: how to start investing in stocks Canada?

A: Open a brokerage account, fund it, and start with diversified ETFs. Avoid chasing “hot stocks” and focus on long-term growth.

Q: how to start investing in real estate Canada?

A: Consider REIT ETFs for beginners. If buying property, research local markets and be aware of mortgage rules and taxes.