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Overview
Our mutual fund exchange feature allows you to move your existing mutual fund investments from another financial institution directly into a lower-cost Wealthsimple portfolio. Once the transfer is complete, your mutual funds are sold, and the funds are invested according to your Wealthsimple portfolio allocation.
This feature is designed to help you save money by switching from high-fee mutual funds to a diversified Wealthsimple portfolio.
How to transfer your mutual funds
To start the transfer process, follow these steps in the Wealthsimple app:
- Log in to the Wealthsimple app
- From the Home tab, scroll down and tap Open or move account
- Select Exchange your mutual funds
- Tap Next
- Select the financial institution where your mutual funds are held
- Follow the prompts to sign in to your other financial institution
- Select an account that contains your mutual funds
- Tap Next
- Select either a new or existing Wealthsimple portfolio to exchange the mutual funds to
- Tap Got it
- Add your signature
- Tap Next
- Tap Submit after confirming your transfer details
Important tax information
If your mutual funds are held in a registered account (like an RRSP or TFSA), there are no tax implications when sold.
Selling your mutual funds may trigger a capital gain or loss for non-registered accounts, which could have tax implications. We recommend consulting with a tax advisor for personalized advice.
Frequently asked questions
Can I keep my mutual funds as they are at Wealthsimple?
How long does the mutual fund transfer process take?
Transfers typically take 2–4 weeks to complete. The actual time can depend on your current financial institution.
What about Deferred Sales Charges (DSC) fees on my mutual funds?
The mutual fund exchange doesn't currently address Deferred Sales Charges (DSC) fees that may apply when selling mutual funds. These fees are decreasing over time as new sales with DSC fees were officially banned in June 2022. We recommend checking with your current institution for details about any DSC fees you may owe before initiating the transfer.
Are there any mutual funds that can't be transferred over?
Yes. While we now support many mutual funds, certain types are blocked from being transferred in during this initial phase. These include:
- Mutual funds managed by an advisor: Only mutual funds held in a trading account are eligible for transfer.
- Specific fee structures: Funds with DSC fees or trailer fees can’t be transferred.
- Unsupported series: Only Series A, D, and E are eligible for transfer at this time.
- Foreign currency: Only CAD mutual funds are supported.
- Internal transfers: You can't currently transfer mutual funds between different Wealthsimple accounts.
If your fund falls into one of these categories, it will be blocked during the transfer process. Other types of mutual funds will be supported over time.
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