Apparently they'll 'pick you clean'.http://www.nytimes.com/2012/07/07/your-money/beware-of-fancy...The issue came up again earlier this week in an article by my colleagues at The New York Times, who quoted former JPMorgan Chase brokers as saying they were encouraged to promote the firm’s own funds to customers even when more competitive investments were available. Not only were the funds expensive, but the bank also exaggerated at least one investment portfolio’s returns. </snip>intercst
There was a time with every investment firm or brokerage out there had their own private label mutual funds. Many copied the objectives of the most popular funds of the day, and seemed to be equivalent. But often their management and performance were mediocre. That made them highly profitable for the firms to promote, but to the disadvantage of investors.In recent times, many have sold off their private label mutual funds. I thought those days were over. But caveat emptor seems to apply. Some are apparently still out there.
I do not know what the situation is now, but Merrill Lynch used to have contests among its "salesman" (OOPS! "financial advisers") to see who could sell the most shares of some of their mutual funds.
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