Switch Investment Options
Changing your investment strategy is a normal part of wealth management as your life circumstances and goals evolve.
Reasons to Switch Investments
- Change in risk tolerance
- Approaching retirement
- Market conditions
- Tax planning opportunities
- Rebalancing portfolio
- New investment becoming available
Types of Switches
Strategy Changes
Advisory Required: Major strategy changes require consultation with your wealth advisor.
- Conservative to Growth: Increasing equity allocation
- Growth to Income: Focus on dividend-paying investments
- Active to Passive: Moving to index-based approach
Individual Holdings
- Mutual fund switches within same family
- Selling individual stocks/bonds
- Moving between account types
How to Request a Switch
1 Review Current Holdings - Check your portfolio online
2 Contact Your Advisor - Discuss proposed changes
3 Understand Implications - Tax, fees, timing
4 Approve Changes - Sign necessary forms
5 Monitor Execution - Verify in your account
Important Considerations
Tax Implications
Capital Gains: Switches in non-registered accounts may trigger taxable events.
| Account Type | Tax Impact |
|---|---|
| RRSP/RRIF | No immediate tax |
| TFSA | No tax |
| Non-registered | Capital gains/losses apply |
Fees and Charges
- Switch Fees: Usually none within same fund family
- Short-term Trading: May apply if held less than 90 days
- Deferred Sales Charges: Check if DSC applies
Timing Your Switch
Best Practices
- Avoid emotional decisions during market volatility
- Consider tax-loss harvesting opportunities
- Time switches with rebalancing schedule
- Factor in dividend payment dates
Processing Times
- Mutual Funds: 1-2 business days
- ETFs/Stocks: Trade date + 2 days settlement
- Between Accounts: 3-5 business days
Automatic Switching Options
Set It and Forget It: Automatic rebalancing keeps your portfolio aligned without manual intervention.
- Quarterly or annual rebalancing
- Threshold-based triggers (e.g., 5% deviation)
- Lifecycle/target-date adjustments
Can I switch investments myself online?
Simple mutual fund switches within the same family can be done online. Complex changes involving strategy shifts require advisor approval to ensure suitability.
How often can I switch?
While there's no strict limit, excessive switching can harm returns through fees and poor timing. We recommend reviewing quarterly but only switching when strategically beneficial.
Need Help? Your advisor can model different scenarios to show the impact of proposed switches before you commit.