Looking to strengthen your clients' portfolios? Read this guide to learn why investing in BMO mutual funds could be the key to achieving their investment goals
Recommending mutual funds is a smart move for financial advisors who want reliable, professionally managed investment options for their clients. Each mutual fund is built with a clear objective. Some focus on generating income while others are designed to preserve capital or pursue long-term growth.
In this article, Wealth Professional Canada will discuss BMO mutual funds. These funds are backed by the Bank of Montreal, one of Canada’s oldest and most stable financial institutions. We will help you learn what sets BMO mutual funds apart from the other options in the market. We will also explain how they work and how you can use them to build diversified portfolios for your clients.
How do BMO mutual funds work?
Like other mutual funds, BMO mutual funds allow your clients to invest alongside others who have similar goals. Their money is pooled together and managed by a professional who selects investments based on the fund’s objective. These investments can include equities, fixed income, or other assets, depending on the strategy.
This structure gives your clients access to a professionally managed portfolio without needing a large initial investment. It also helps reduce the risk that comes with holding individual securities. For financial advisors, mutual funds offer a practical way to help clients build long-term plans with built-in diversification and active oversight.
If your clients are new to mutual funds or want to understand how they work in more detail, BMO offers educational resources.
Watch this video to learn more about BMO mutual funds:
Want to know more about investing in mutual funds? Read this guide.
How your clients can start investing
Your clients can invest in BMO mutual funds through several channels, depending on what’s most convenient for them. They can start by speaking with a BMO investment professional at their local branch. Appointments can be booked online, or clients can call BMO directly for support over the phone.
If a client already has a BMO investment account, they can sign in through BMO Online Banking to make a purchase. For new clients, the first step is opening an account. This can also be done by booking a branch appointment or calling the same support line.
Why investors should consider BMO mutual funds
Choosing to invest in BMO mutual funds offers several upsides for your clients. For one, there’s a considerable number of mutual funds they offer. To date, investors can choose from 403 different managed funds as of June 2025. Here are some of them:
- BMO Dividend Fund
- BMO Money Market Fund
- BMO Emerging Markets Bond Fund
- BMO Global Strategic Bond Fund
- BMO Monthly Income Fund
Let's take a closer look at each:
1. BMO Dividend Fund
The BMO Dividend Fund is built for clients who want a mix of dividend income and long-term capital growth. It invests mainly in dividend-paying common and preferred shares of well-established Canadian companies.
The portfolio manager uses a bottom-up approach by focusing on company fundamentals and stable cash flow. Stock selection is based on:
- valuation
- management quality
- earnings consistency
This fund suits investors who want exposure to Canadian equities and are comfortable with low to medium investment risk, including moderate changes in market value over time.
2. BMO Money Market Fund
Next, we have a fund that’s designed for those who want to protect their capital while earning regular interest. It invests mainly in high-quality money market instruments issued by Canadian governments and corporations, including treasury bills and bankers' acceptances.
The BMO Money Market Fund aims to provide liquidity and stability. This makes it a suitable choice for clients with short-term goals or those looking to park cash temporarily. It is best suited for investors who prefer low risk and want to minimize exposure to market fluctuations while keeping their money accessible.
3. BMO Emerging Markets Bond Fund
Do your clients want access to fixed income opportunities in emerging markets? They might want to go for the BMO Emerging Markets Bond Fund. It invests in bonds and debentures issued by governments and corporations in regions with growing economies.
The portfolio manager follows a research-driven approach that considers these factors:
- regional selection
- sector selections
- security selection
- yield curve positioning
- overall duration positioning
The BMO Emerging Markets Bond Fund can hold investments in both local currencies and USD. It may also use derivatives and invest in other funds. This solution fits those who want global diversification through fixed income and are comfortable with some market fluctuations and credit risk.
4. BMO Global Strategic Bond Fund
This fund is built for investors who want regular monthly income and long-term growth potential through global fixed income markets. The BMO Global Strategic Bond Fund targets debt instruments from governments and corporations worldwide.
The portfolio includes both investment-grade and high-yield bonds, as well as emerging market debt. Security selection is based on a mix of credit ratings analysis and quantitative research. This is ideal for clients who are comfortable with low to medium risk and prefer consistent cash flow. The same is true for those who are willing to invest over a medium to long-term horizon.
5. BMO Monthly Income Fund
Your clients might choose the BMO Monthly Income Fund if their plan is to have consistent monthly income while preserving their capital over time. This fund invests primarily in fixed income securities that offer higher yields, including bonds issued by the federal and provincial governments, government agencies, and corporations.
The BMO Monthly Income Fund also holds income-generating equity assets such as:
- preferred shares
- common shares
- real estate investment trusts (REITs)
- royalty trusts
- other high-yielding investments
To boost income, this fund can include lower-rated or unrated securities and use derivatives. The BMO Monthly Income Fund also suits clients who want regular cash flow and are comfortable with low to medium investment risk.
Want to see other mutual funds to invest in now other than BMO? Here's the top 10 performing mutual funds in the country.
BMO mutual funds are compatible with registered accounts
Aside from the variety of options that your clients can choose from, BMO mutual funds can be tied to registered accounts. Investors can have their earnings go directly into these account types:
- Registered Retirement Savings Plans (RRSPs)
- Registered Retirement Income Fund (RRIF)
- Tax-Free Savings Accounts (TFSAs)
- Registered Education Savings Plans (RESPs)
- Registered Disability Savings Plans (RDSPs)
Get to know Bank of Montréal
The Bank of Montreal holds the distinction of being Canada’s first bank. The Bank of Montreal was established in Montreal, Québec, in 1817.
On June 23 that year, a man named John Richardson and eight other merchants got together in a rented house. There, they signed the Articles of Association to create a bank named Montréal Bank. Montréal Bank would initially conduct business in that house, then move to a permanent office on Rue Saint-Paul a year later.
Three years after moving office, Montréal Bank would get its name changed to Bank of Montréal. Decades after the name change, Bank of Montréal would become one of the Big Five, which simply means the big five banks of Canada.
With a market capitalization amounting to $105 billion as of June 2025, BMO has since put up over 800 branches in Canada. It provides various financial services for seven million people.
Branches in the US
Since 1990, BMO has served customers in the greater Chicago area, then branching out to the other United States via its subsidiary BMO Harris Bank, under the BMO Financial Group.
In 1994, BMO itself became the first Canadian bank to get listed on the NYSE.
BMO’s history of reliability
Aside from having the distinction of being Canada’s first and oldest bank, Bank of Montréal has the honour of being one of the most reliable financial institutions when it comes to dividend distributions. Ever since it began making dividend payments in 1829, it has never missed a single dividend payment.
BMO has consistently paid dividends despite major events like the Great Depression, World Wars I and II, and even the financial crisis of 2008. Although to be fair and accurate, the 2008 financial crisis affected Canada much less than it did the US.
Choosing the right BMO mutual fund for your client's needs
BMO mutual funds offer investment solutions supported by one of Canada's Big Five as well as a trustworthy name in the financial sector. The bank's long history in the market helps advisors offer products that are backed by proven management and a strong operational foundation.
Each BMO mutual fund is designed with a specific purpose. Some are for preserving capital while others focus on generating income. Some are built for long-term growth. This allows you to align a client’s portfolio with their timeline and priorities.
In the end, the right BMO mutual fund depends on what they’re trying to achieve in the short- or long-term.
Want to read the latest updates on the mutual funds market? Check out our Mutual Funds page.
