Topic: How To Invest

RBC Canadian Equity Fund $25.15

RBC CANADIAN EQUITY FUND $25.15 (CWA Rating: Conservative)(RBC Funds, P.O. Box 7500, Station A, Toronto, Ontario. M5W 1P9. 1-800-463-3863; Web site: www.royalbank.com. No load — deal directly with the bank) invests mostly in larger-capitalization stocks, but also looks for opportunities in small and mid-cap stocks.

The fund’s 10 largest holdings are TD Bank, Manulife Financial, Bank of Nova Scotia, Royal Bank, EnCana Corporation, Petro-Canada, CN Railway, Talisman Energy, Suncor Energy and Canadian Natural Resources.

The $4.4 billion fund holds a relatively high 28.8% of its holdings in Financial stocks. It also holds 25.3% in Energy stocks.

Over the last ten years, RBC Canadian Equity posted a 10.3% annual rate of return. That’s about equal to the S&P/TSX’s gain of 10.6%. The fund made 18.8% over the last year, compared to a gain of 19.6% for the S&P/TSX. The fund’s MER is 2.02%.

RBC Canadian Equity Fund is a buy.

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