Close Close
Sign In
Newsletters
Popular Financial Topics Discover relevant content from across the suite of ALM legal publications From the Industry More content from ThinkAdvisor and select sponsors Investment Advisor Issue Gallery Read digital editions of Investment Advisor Magazine Tax Facts Get clear, current, and reliable answers to pressing tax questions
Luminaries Awards
Podcast Center Video Center Webcasts Resource Center Events
About ThinkAdvisor Contact Us Advertise With Us Asset & Logo Licensing Sitemap Terms of Service Privacy Policy Copyright © 2024 ALM Global, LLC. All Rights Reserved.
ThinkAdvisor

Portfolio > Mutual Funds

Mutual Funds Remain Popular Among Planners

By Staff Writer

X
Your article was successfully shared with the contacts you provided.

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.

The study also found that many planners are increasingly allocating the bulk of portfolios — perhaps 40%-60% — to mutual funds and exchange-traded funds, and complementing this “core” portion with one or more separately managed accounts or specialty mutual funds, FRC said.

“Mutual funds certainly aren’t shriveling up and dying,” said D. Christopher Brown, an FRC consultant who wrote the study. “When you consider that mutual funds have been a familiar way of investing for the last 15 to 20 years, clients have a high degree of comfort with funds, which makes it easy for advisors to use them to implement planning strategies.”

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.