An Exception to the Free Market Economy – Something Just Doesn’t Add Up with So Many Poorly Performing Mutual Funds
Many studies repeat the theory that there are approximately 10,000 mutual funds and 75% under perform their relevant index. We all know a free market economy is based on free choice and competition. If a free market is based on free choice and competition why is anyone investing in these perennial under performers? Wall Street has some explaining to do–why are there so many poorly performing mutual funds if there is a competitive marketplace?
- Who are the advisors recommending these funds to their retirement clients?
- Why hasn’t anyone given retirement investors the tools to make an informed choice and not select the poorly performing/high fee funds?
- Why do employers put poorly performing Funds in their 401(k)’s?
- Why do paid CFP’s and other Defined Contribution Plan consultants recommend these poorly performing funds to employers?
- Why is the Department of Labor allowing poorly performing/high fee funds in your 401(k) plan?
Listen to this video interview with a Financial Advisor, conducted by the Financial Times’ Financial Advsor IQ, on how an Advisor selects a mutual fund. The reality, as the last financial advisor in this interview told the Financial Advisor IQ, is one needs an Advisor to sort through all these poorly performing funds. The industry, “Wall Street” has created the need for a “financial advisor” by stuffing thousands of poorly performing mutual funds with retirement investor assets and into 401(k) Plans.
In the article linked to above, Michael Rosen, Financial Advisor told the Financial Times Financial IQ:
“Hey, you could just throw a dart at a board. No, realistically, there’s a million of them out there, but there’s plenty of tools that you can break them down, like tenure of the manager, the volatility of the fund, then doing a fact-find on what the client’s looking to do and then you try and put it together and make the best decision. But, again, that’s why you need a financial advisor, because there are a million different choices out there and you try and simplify it for the client.”
Not On My Nickel’s concept is simply you select the one or two portfolio managers that will do all the work for you, with top performance and low fees.
- Less Fees to the mutual fund manager
- Proven investment strategy from top portfolio manager, that has a 10-15 year track record of out-performing their relevant index
- No Fee to a Financial Advisor, who you do not know if they are any good at selecting Funds for you or if they may have conflicts on what they select for you
- The tools and training for you to decide what portfolio manager/mutual fund is in your best interests.
Remember, just because Wall Street has created over 10,000 poorly performing mutual funds, you do not need to pay an Advisor to select one of these poorly performing funds for you, as they have in the past. Not On My Nickel gives you the tools and the confidence to select the portfolio manager, the investment style and a top performing Portfolio Manager to manage your retirement nest egg.
Further, how do you know if the financial advice you have been given is any good, in terms of investment selection? You do not know unless you can compare the Advisor’s recommendations against a benchmark. Chances are you are losing thousands of dollars in worthless fees and poor performance.
Not On My Nickel is the education service that shows you how to evaluate the investment selection advice you are given, through tools and the benchmark. When there are a few top portfolio managers that have demonstrated they can out perform the relevant index, why would you ever settle for an index fund or a passive investment or poorly performing fund. You are guaranteed to under perform the index, if you pay an Advisor for a passive investment or a package of passive ETF’s, based on a computer model.
Help Us Return to A Free Market, A Competitive Market Place for Mutual Funds
Once you exercise your informed choice and select the top performing mutual funds, the poorly performing funds will disappear. It is call free and open competition. You are in charge of restructuring this flawed marketplace, littered with thousands of poorly performing, high fee mutual funds.