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The Mutual Fund Store / A Wrapping of Deceit?

1 United States Review updated:

I examined the promises this company makes. A) They say you will own the "best Funds". What is the definition of best fund? There aren't any other than past performance. Do you want to invest based on past performance? How hard really, is it to move your money to the funds sporting the "best" past performance AFTER you know the results? Not very difficult I would guess. Does the company have any predictive powers of what the "best" fund will be in the next 12 months? You can be judge of that. But while you're at it, please tell me who will win the Kentucky Derby next year as well. The odds are about the same. B) Wrap Fees. That's how they make their money. The are many people who consider wrap fees as fraudulent. You be the judge of that. But you should at least know what wrap fees are and what they mean for your portfolio. Read this link for some clarity.
http://www.stockbrokerfraudblog.com/2007/06/wrap_fees_beware_of_investment.html
Here is another one. http://www.byrneasset.com/images/Article-NJL-wrapaccounts.pdf
The Mutual Fund Store is an RIA firm cloaked in a Wrap Agreement. How can you tell? Ask them for any financial advice other than the allocation of your money into various mutual funds. That is all they will do. They are unable to provide any other financial advice. No estate planning, no tax planning, no insurance evaluation. It's nothing but a wrap program, which many consider fraudulent and barely legal. You be your own judge. Do your own research.

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Comments

  • Ad
      11th of Nov, 2010
    0 Votes

    Here is another article about the pitfalls of the "wrap accounts". It's just another layered fee to pay in your portfolio on top of the high fees of the funds chosen.
    Copy and paste this link from Forbes. http://www.forbes.com/forbes/2010/0412/investing-brokerage-commission-retirement-finra-ripping-you-off.html?boxes=Homepagetmagazines

  • St
      25th of Dec, 2010
    -1 Votes

    Dear weaned on a pickle,
    Why are you so sour on paying for a service. If you don't want the service, don't pay for it! Sounds like you placed your money with them, you were unhappy with the results, and now it's everyone else who is at fault.
    If you entered into an agreement with them, did you read the paperwork first? If wrap fees were fraudulent they would not be allowed. Don't most of the largest accounts in the world have their money managed in some sort of wrap account? Yes they do. Forbes sells advertising not investment advice, read their disclaimer about investment advice they give. Life is too short to complain, let it go.

  • Se
      3rd of Feb, 2011
    0 Votes

    Once you punt Mutual Fund Store off your accounts at Schwab, all kind of portfolio planning and analysis tools become available for you. You can easily set your allocations and rebalance it yourself without paying the high fees for someone else to do it. Unless a person is completely illiterate when it comes to investing, using Schwab's plethora of tools is a no-brainer in my humble opinion. You won't be able to see any of the Schwab tools as long as you are hooked up to Mutual Fund Store, however. So in a way they keep you in the dark!

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