Ever wonder why unitsof some mutual funds are described by a series letter such as A, F, or I?

Those letters tell you about its load or fee structure. Since not all mutual funds charge fees in the same way, it's important to look carefully at what series of mutual fund units you are buying. There are no set rules about which letter goes with which fee structure in Canada, but here are a few general guidelines:

• Series A
  Most investors buy Series A units. MERs for this series are higher than Series F. That’s because advisers who sell you the fund may receive commissions and trailer fees.
• Series F
  Series F units tend to be available only through an adviser, often through a special account where you pay a single annual fee for services (a wrap account), or through a fee-for-service plan. You negotiate and pay your fees directly to the adviser. Your fees are based on a percentage of the total assets the adviser manages for you. Fund managers do not pay any commission to the adviser since you are already paying your fees. This keeps management fees lower than those for Series A units.
• Series I
  In most cases, Series I funds are aimed at investors with a high net worth. Buyers often have more than $500,000 to invest, but that amount can vary from fund company to fund company. Series I also attracts institutional investors such as pension plans.
• Additional letters
  Fund companies may assign any letter of the alphabet to a series of mutual funds with special conditions. In most cases, they offer these funds only to selected investors. For example, after various fund reorganizations and mergers, one fund company created Class Y and Z series for people who previously owned the funds involved.

Keep in mind that all fund companies have their own way of using the different series labels. No two companies are exactly alike.

Where can I learn more about a mutual fund's fees?

• Use our mutual mund fee calculator to find out how much your mutual funds cost .
• Look closely at the Part A section of the prospectus for each fund. You'll find information about the various series under the heading “Purchases, Switches and Redemptions.”
• You can find even more detail on costs under the heading “Fees and Expenses Payable Directly by You.”