Simplii Financial Index Mutual Funds Review

An online investing platform with low-cost options to invest and grow your money with ETFs.

WRITTEN BY
Lisa Rennie
Updated September 15, 2020


RATING

You don’t always have to seek out an investment broker or an online platform that is specifically dedicated to investing. Simplii Financial has an investment arm that offers various investment vehicles for clients to invest in. Investing with Simplii offers Canadians a low-cost option to invest and grow their money with affordable ETFs that can be purchased and held through an online account. Newbie and experienced investors can also buy index funds like the Simplii index mutual. 

Simplii offers mutual funds that are passively managed and designed to provide healthy returns with minimal risk. Index funds are known to charge much lower fees than traditional mutual funds but still offer the chance to see healthy returns.

Formerly owned by PC Financial, Simplii was completely rebranded when it was taken over by CIBC in 2017. PC still holds the company’s Mastercard product, while CIBC took over the online banking business.

Let’s take a closer look at Simplii’s investment products to help you decide if this is the right online investment platform for you. 

How Does Simplii Work?

Simplii is an online bank that also offers the opportunity for Canadians to invest in low-risk, high return mutual funds. The platform caters to investors on all parts of the spectrum, from aggressive investors with an appetite for risk to more conservative investors who are looking for a way to get started investing with minimal upfront capital. 

Investors can choose an investment option that’s affordable and easily manageable. You can choose from seven different index fund portfolios to best suit your investment strategy, and include mutual fund products in your RRSP, RESP, RRIF, or TFSA. In order to start investing with Simplii, all you need is $25 and an account with Simplii Financial. 

Index Mutual Funds Through Simplii

Simplii’s investment offerings involve index mutual funds, which are investment vehicles that involve money that is pooled with capital from other investors. The funds are then managed by professional investment managers who use the money to invest in a number of ways, giving all investors the benefit of diversification to minimize risk and capital on fund growth.  

Mutual fund portfolios are automatically rebalanced twice a year to ensure they continue to match your needs.

Index mutual funds come with lower management fees and trading costs compared to actively managed funds, making this “passive” form of investment more affordable for novice investors or those with minimal capital. All CIBC index mutual funds are offered by CIBC Securities Inc. for Simplii Financial clients.

Simplii Index Mutual Fund Portfolios

The following index portfolios are available through Simplii investments.

PortfolioGoal & Fund AllocationMER
Conservative IncomePreserve capital while maximizing interest income.
– CIBC Money Market Fund: 15%
– CIBC Canadian Short
– Term Bond Index Fund: 40%
– CIBC Canadian Bond Index Fund: 35%
– CIBC Global Bond Index Fund: 5%
– CIBC Canadian Index Fund: 5%
0.95%
IncomeModest focus on capital growth while hedging against risk and losses.
– CIBC Money Market Fund: 5%
– CIBC Canadian Short-Term Bond Index Fund: 35%
– CIBC Canadian Bond Index Fund: 35%
– CIBC Global Bond Index Fund: 5%
– CIBC Canadian Index Fund: 5%
– CIBC U.S. Index Fund: 8%
– CIBC European Index Fund: 7%
1.03%
Income PlusFocus on long-term growth of capital and high-level income while attempting to still preserve capital.
– CIBC Money Market Fund: 3%
– CIBC Canadian Short
– Term Bond Index Fund: 27%
– CIBC Canadian Bond Index Fund: 30%
– CIBC Global Bond Index Fund: 5%
– CIBC Canadian Index Fund: 10%
– CIBC U.S. Index Fund: 13%
– CIBC European Index Fund: 8%
– CIBC Asia Pacific Index Fund: 4%
1.05%
BalancedEqually focused on high-level income and long-term growth through capital appreciation.
– CIBC Canadian Short
– Term Bond Index Fund: 15%
– CIBC Canadian Bond Index Fund: 30%
– CIBC Global Bond Index Fund: 5%
– CIBC Canadian Index Fund: 16%
– CIBC U.S. Index Fund: 18%
– CIBC European Index Fund: 10%
– CIBC Asia Pacific Index Fund: 6%
1.09%
Balanced GrowthFocused on long-term growth through capital appreciation, while maintaining a high-income level.
– CIBC Canadian Short-Term Bond Index Fund: 5%
– CIBC Canadian Bond Index Fund: 25%
– CIBC Global Bond Index Fund: 5%
– CIBC Canadian Index Fund: 17%
– CIBC U.S. Index Fund: 23%
– CIBC European Index Fund: 13%
– CIBC Asia Pacific Index Fund: 8%
– CIBC Emerging Markets Index Fund: 4%
1.11%
GrowthFocused on long-term growth through capital appreciation, with some attention to maintaining a high level of income.
– CIBC Canadian Bond Index Fund: 15%
– CIBC Global Bond Index Fund: 5%
– CIBC Canadian Index Fund: 23%
– CIBC U.S. Index Fund: 28%
– CIBC European Index Fund: 15%
– CIBC Asia Pacific Index Fund: 10%
– CIBC Emerging Markets Index Fund: 4%
1.11%
Aggressive GrowthFocused on long-term growth through capital appreciation with modest focus on income.
– CIBC Canadian Bond Index Fund: 10%
– CIBC Canadian Index Fund: 20%
– CIBC U.S. Index Fund: 32%
– CIBC European Index Fund: 20%
– CIBC Asia Pacific Index Fund: 12%
– CIBC Emerging Markets Index Fund: 6%
1.12%

What Types of Accounts Are Available Through Simplii?

In addition to mutual funds, Simplii also offers the following investment accounts:

  • RRSPs
  • GICs
  • RESPs
  • LIRAs
  • TFSAs

How Much Does it Cost to Invest With Simplii?

There are MER fees associated with investing with Simplii. These fees are charged when you purchase any of the above-mentioned mutual funds and cover management fees, commissions, and other trading fees. The MER fees charged for any of the mutual fund portfolios range from 0.95% to 1.12%. There may be additional fees charged on registered investment plans. 

Perks of Investing With Simplii

There are a few reasons why you might want to consider investing with Simplii:

  • Seven investment options. You’ll have seven different portfolio options to choose one, each one designed for a specific type of investor. 
  • Customized portfolio. While there are several portfolio options to choose from, you can have your portfolio fully customized and tweaked according to your financial situation and goals. 
  • Use registered or non-registered accounts. You can invest in any of the portfolios offered using both registered or non-registered investment accounts. 
  • Discount fees. If you have an account with Simplii Financial, you’ll be eligible for a discount on your MER fee. 
  • Minimal upfront investment required. You can start investing in most mutual funds with as little as $25 a month.
  • Funds are protected. Up to $100,000 of your investment is protected by the CDIC.

What Customer Support Does Simplii Offer?

Simplii offers a few ways to get in touch with live help:

  • Telephone: 1-888-723-8881
  • Email: talktous@simplii.com
  • Live chat: Available Monday to Friday, 7 am – 12 am EST, and Saturday, Sunday and holidays, 9 am – 6 pm EST

Overview of Investing Options Offered by Simplii

Minimum investment$25
Types of accountsRRSP, GIC, RESP, LIRA, TFSA
Number of investment portfolios7
MER Fees0.95% – 1.12%
Socially responsible investing (SRI)No
Automatic re-balancingYes

Who is Simplii Best Suited For?

Simplii works both for the novice and experienced investor. That said, those who are new to the world of investing and don’t have a huge amount of capital to start with will find Simplii the ideal platform to invest with. 

Only $25 is needed to start, and you can tailor your investment portfolio according to your risk tolerance and financial goals. By investing in index mutual funds, you will have the opportunity to spread all the eggs in your basket to maximize returns while hedging against risk. 

While done all online, you’ll still have direct access to investment professionals who will help answer your questions and make any changes you deem necessary. Otherwise, sit back and relax while your investment passively grows without the need to intervene. Plus, you can enjoy affordable fees, especially when compared to traditional investment brokers.