April 23, 2003 — Mutual funds remain the investment of choice for most financial planners who provide comprehensive services, according to a study by fund tracker Financial Research Corp.
The survey of members of the Financial Planning Association also found that planners have “widespread and substantial interest” in investment products like separately managed accounts and exchange-traded funds, FRC said. Exchange-traded funds trade like stocks.
Of the 653 planners who completed the survey, 92% said they use mutual funds, excluding funds in wrap accounts. The planners said they hold 46% of client assets in funds, which is “substantially” more than the average allocation for other investment products.