Most Investors Seek Advice Before Buying Mutual Funds

Three out of four investors consult with a financial adviser before purchasing mutual funds, according to a survey by the Investment Company Institute.

Three out of four investors consult with a financial adviser before purchasing mutual funds, according to a survey by the Investment Company Institute. In other results, 46% of those polled say they contacted a fund company or Web site for more information, while 40% turned to family, friends and business associates for advice. Further, only one-third of those questioned use information from a fund prospectus to assist in decision-making, while an equal percentage found similar material in the media and investment newsletters. Three-fourths of respondents ask about fund fees and expenses before buying, while 69% say they factor in past performance. Information on portfolio managers was an issue for only 25% of those surveyed.