Discuss all general (i.e. non-personal) investing questions and issues, investing news, and theory.
Here is an interesting comment from Scott Simmon's Fiduciary Focus
column on Morningstar.com.
"Mutual fund companies do not have a fiduciary duty to investors in their mutual funds, but they do have a fiduciary duty to shareholders in those fund companies. That set-up characterizes Fidelity, for example, but it doesn't characterize Vanguard, because Vanguard does have a fiduciary duty to investors in its mutual funds; indeed, the investors in Vanguard funds are the same as the owners of that fund company. (The legendary John Bogle often speaks of the necessity for mutual fund management to be fiduciaries to the investors in their funds.) In the main, though, mutual funds are simply products whose management offers no fiduciary protection to those that invest in them."
Mutual fund investing is simple. There is risk, there is return, and there are costs. All else is marketing.
- Posts: 7804
- Joined: Mon Feb 26, 2007 12:40 pm
- Location: Home on the range in Medina, Texas
I believe the mutual fund board has fiduciary responsibility to the investors but unfortunately many of these board members have ties with the mutual fund company, even though a majority is supposed to be independent. Hard to break this cycle when there are billions of $ involved.
- Posts: 649
- Joined: Wed Dec 01, 2010 10:17 am
- Location: NYC
Is Vanguard really a fiduciary? If you decide to invest 50% of your portfolio in its Precious Metal and Mining fund, how does Vanguard know it's of your best interest to do so? Does Vanguard do something to stop you?
Harry Sit, taking a break from the forums.
- Posts: 6685
- Joined: Mon Feb 19, 2007 6:46 pm
Return to Investing - Theory, News & General
Who is online
Users browsing this forum: bhsince87, Dale_G, elgob.bogle, Epsilon Delta, Kevin M, LowER, Lynette, michaelsieg, Prokofiev, sfnerd, SnowSkier, Tristan, TurnitinBot [Bot] and 90 guests