Switch to Index Fund for My RRSP

I called the ING Mutual Fund Associate last week to switch from ING Aggressive Portfolio to the new ING Street Wise Growth Fund. It looks like it is all done today. (It took around 7 - 8 business days for the whole process to be done)

The main reason for the switch is that the MER associated with the original aggressive portfolio is too high, average 2.3%. I do not think its performance is worth that. The MER for the ING Street Wise Fund is 1% and it will be balanced every quarter.

I know the MER is still high, at least not cheap, for an index fund compared with TD eFund series and ETFs. But my annual RRSP contribution is small at this moment, around $4800 per year. If I use ETFs instead to build my portfolio, it will be inefficient for me to do the dollar cost average and keep my trade commission low.

Also, as I mentioned in previous post, the ING Street Wise Fund might not be tax efficient outside RRSP. Since I will hold it inside my RRSP, I don't need to worry about that now.