There is a raging debate on how financial advisors are compensated for financial products, particularly how they receive commissions hidden in mutual fund fees. While mutual funds are these days could be describe as “Weapons of Mass Financial Destruction” let’s take a look at mutual fund’s evil cousin, the “exempt market security” and how they are awarding this investment opportunity to only accredited investors.
In a recent article in business standard several questions were raised on the relevance of the Mutual funds as the Funds have created too much complexity for their own good. So investors cannot perceive the benefit of investing in mutual funds. Even the very few that are performing well do not talk about it imaginatively. Net result: most savers don’t know or don’t believe in the benefits of using mutual funds. Continue reading “Mutual funds Model & Exempt Market Security”