how can one invest in mutual funds and stop the broker from churning the funds for his own benifit?
2007-12-17 08:55:27 · 8 answers · asked by prtpjs 3 in Business & Finance ➔ Investing
the Q is asked in yahoo india...so am asking about indian experiences...
2007-12-19 19:06:47 · update #1
Apply in SBI, HDFC, Reliance or Franklyn Funds. They have a good track record.
Visit http://www.valueresearchonline.com for viewing the performance of companies in last couple of years.
2007-12-17 14:54:20 · answer #1 · answered by Anonymous · 0⤊ 1⤋
First of all you're not speaking of apples and oranges. A mutual fund doesn't churn anyone's funds. Stock brokers sometimes do. Mutual funds are shares, yes like a stock, yet not like a stock in the sense that you own many companies in little pieces vs owning a piece of a company outright. If you have $100k to invest and put it with a broker he/she may constantly call and bug you with buy/sell advice...churning will only happen if you assign him/her power of attorney to make trades for you. You can always say no when they call. If you don't care to have a broker bug you all the time and want solid investments choose a Fund Family or two to place your $$$ in. I prefer Vanguard and T Rowe Price...There are others that are good too...do your due diligence. HAPPY HOLIDAYS!
2007-12-17 09:43:37 · answer #2 · answered by thebigm57 7 · 0⤊ 0⤋
There are plenty of legitimate brokers and financial/investment companies out there, and, given that you have to ask such a question in this website, means that you don't have the kind of money that they would be interested in, even if they weren't legit ("churning", as you describe it, is illegal; such "churners" could lose their license and go to jail; your invested funds, meanwhile, are protected by the SIPC against such, so no worries, there (of course, losses due to investment downturns are not included)). Just go to the phone book and pick one of the more popular company names.
P.S., the word is "benEfit".
2007-12-17 09:39:23 · answer #3 · answered by skaizun 6 · 0⤊ 0⤋
Don't buy mutual funds through a broker. But no-load funds direct - T. Rowe Price, Vanguard or Fidelity, to name a few.
2007-12-17 09:22:01 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Instead of putting my money into a Mutual Fund, I just put my money in Warren Buffet's "Berkshire Hathaway" A and B shares, Brk.a and Brk.b
Even thought they are pretty expensive, but they have averaged a return of about 28-31% every year since 1990. See the graph's on yahoo finance...
http://finance.yahoo.com/q/bc?s=BRK-B&t=5y&l=on&z=m&q=l&c=
His investments include American Express, Bonds, Walmart, Washington Post, etc... (See shareholder's letter for more info about that)
2007-12-17 09:06:15 · answer #5 · answered by Anonymous · 1⤊ 1⤋
I invest with Fidelity and Vanguard. It also depends on which types of mutual funds you buy. Get no-load funds. They charge a very small amount.
2007-12-17 09:00:13 · answer #6 · answered by afreeman20035252 5 · 0⤊ 1⤋
go for an index fund with someone reputable, like tiaa creff or prudential or touchstone. the broker can't sell anything without your approval.
2007-12-17 08:58:32 · answer #7 · answered by BonesofaTeacher 7 · 0⤊ 1⤋
No distinction between the two. Everyone wants to fatten their pockets.
2007-12-17 09:14:09 · answer #8 · answered by pai 5 · 0⤊ 1⤋