The Mutual Fund Store
What does everyone think about The Mutual Fund Store?
Is that like the liquor store? In my opinion, people who are willing to pay fees don't want to pay them to a guy in a strip mall or a cube.
Could take some market share away from Edward Jones over time..as stated above, very basic approach but useful for the simple situation and/or those will smaller accounts who aren't getting any help anywhere else. I think Schwab's new approach of trying to turn their branch people into "advisors" is in the same vein as the MF Store, but with a helluva lot better known brand.
I took a group of accounts from a MF Store advisor last year. The approach was a simple fee-based mutual fund account with Schwab as the asset custodian. Bland statements, average performance and a really cheesy name...who on earth would consider "The Mutual Fund Store" for serious investment management?!!! That's like buying truffles and caviar at Wal-Mart.
That's the only time I've ever come across them...and it was easy to transfer the account.
They're the people who advertise here in the STL market on the radio. I love the doublespeak in the add. "Don't pay those high loads at the other places. Come in and we'll buy you No Load funds (for a small annuall fee). "
I've heard the routine over there is that you work every Saturday morning because that's when the radio show is on. You come in and answer the phone calls for people who want to give you their money. Very good marketing. I can't speak about their money management practices because I've never seen a portfolio they've built.
At least at Jones most people understand we get paid for what we do. The Mutual Fund Store add turns my stomach every time I hear it.
One additional piece of information on them...the one I moved wasn't particularly cheap...charged 1.5% for a mutual fund wrap program on about $300K.
I think if you are are a retail operation and you are compared to Wal-Mart, that would be a good thing. Like many other outlets, if they could ever combine the ethos of the individual broker/FC/FA/IR with a well-oiled marketing machine, they'd have it made...but perhaps they are far from it. Schwab, Fidelity, and banks could mint $ if they got this combo right also...but I doubt they ever will.
I've heard the routine over there is that you work every Saturday morning because that's when the radio show is on. You come in and answer the phone calls for people who want to give you their money.
What kind of show is it? Infomercial? Call-in?
The guy touts the fund flavor of the week. It is pretty absurd really. " Oh well
I like these three funds for this or these two for that." Then next week caller
asks same questions and its same strategy different no loads to offer. Talks
a lot about the smaller lesser know managers who run their own fund.
"Good morning from WWZZWU AM radio its the Mutual Fund Show, Call us
and ACAT that puppy on over, we will show how its done!"
Very silly way to invest if you ask me. Call Dr. Drew on Love line-- ask him
he makes a ton of money, sure has some winners.