The topic of mutual fund fees has been getting a lot of attention lately. As mutual fund fees are taken from the entire pool of investor assets and shown as a percentage (instead of as a dollar figure), many people still aren’t completely clear on what these fees are and what they cover.
Many advisors enter their profession because they know they can make a meaningful impact on the lives of clients and their clients’ family members. Advisors gain satisfaction from helping clients achieve their financial objectives, such as buying a home, paying for a child’s education, saving for retirement or any number of worthwhile goals.
As an advisor, before you can give financial advice or sell financial products, you have to learn several things about your clients. This is called the Know Your Client (KYC) rule, and it protects investors by ensuring any advice they receive or products they invest in are suitable for them. It also protects advisors by giving them a better idea of the advice, products and services they can offer each client.