Prajna Capital - An Investment Guide

Mutual fund products may be available through stock market brokers now, but there is a big question over their ability to serve investors properly Even though investors can now buy funds through stock brokers, I fear that in practice, this may be a little bit like trying to order a glass of milk in a bar. You may want the healthy option, but when the establishment is used to serving only the heady and intoxicating stuff, then that’s what they’ll try and serve to you. Brokers are a convenience for those who don’t have access to mutual fund advisors, but they are unlikely to be suitable advisors. Don’t get me wrong — I’m not saying that the new system of allowing the stock exchange’s system to sell mutual funds is bad. It definitely expands the potential reach of mutual funds across the country. It also gives the mutual fund industry an electronic transaction platform, on which the industry itself has looked incapable, or unwilling, of making any visible progress. The exchanges’ network ...