Mutual Funds

Most financial advisors recommend mutual funds to their clients that also include index funds and Exchange Traded Funds. The mutual funds are responsible for investing your assets in the securities markets. The role of the financial advisor is to help you select quality mutual funds and to monitor the performance of the funds. When mutual funds under-perform for longer time periods, financial advisors also recommend suitable replacements for them.

There are two primary types of mutual funds based on the financial advisors' compensation methods. Advisors who are compensated with commissions recommend load mutual funds. Load means commission. Advisors who are compensated with fees recommend no-load mutual funds.