Mutual funds on track for a comeback year as investors seek fixed income, alternative products

While exchange-traded fund sales have set records, mutual funds have quietly made a comeback.

Like compact discs and yogurt smoothies, many view mutual funds as once-popular products that have fallen out of favour. But the reality has been different this year.

While exchange-traded fund sales have set records , mutual funds have quietly made a comeback. Data from the Securities and Investment Management Association (SIMA) show that through October, mutual fund net sales in Canada have topped $33-billion, more than double last year’s total. In contrast, there were large outflows from mutual funds in the previous two years.

“There has been huge growth in mutual fund assets throughout the year, driven by positive market effects and positive sales,” says Ian Bragg, vice-president of resea