Mutual Funds

Introduction In the world of finance, few things are designed to be as safe and boring as a money market mutual fund. For decades, they have served as the bedrock of cash management for both individuals and institutions—a place to park money with minimal risk. But in September 2008, the unthinkable happened: the Reserve Primary […]

In my years of analyzing financial instruments, I have found that few innovations have democratized wealth creation quite like the mutual fund. It is a concept so simple and powerful that it seems inevitable, yet its history is a fascinating story of financial evolution, regulatory response, and a fundamental shift in how ordinary people approach

In the complex architecture of investment fees, few structures are as psychologically clever and financially perilous as the back-end load. I have sat with clients who were initially comforted by this fee—after all, they weren’t charged anything when they bought the fund. The sting would come later, often years into the investment, when a life

Introduction In my career, I have seen too many investors choose a mutual fund based on a glossy advertisement highlighting its one, three, and five-year returns. This is a critical mistake. A fund’s recent performance is often a misleading indicator of its future potential. The only way to truly understand a fund’s character—its resilience, its

In my practice, I have found that backtesting is one of the most powerful and yet most dangerously misunderstood tools in an investor’s arsenal. It offers a tantalizing glimpse into what could have been, a simulation of investment decisions made in a parallel universe of perfect hindsight. However, without a rigorous and skeptical approach, backtesting

Introduction In my years consulting with financial advisory firms, I’ve seen a clear divide between those who thrive and those who merely survive. The difference often boils down to one critical element: the efficiency and power of their back-office software. For a mutual fund distributor, this technology is not a mere administrative tool; it is

In the landscape of investment fees, few structures are as misunderstood as the back-end load, formally known as a Contingent Deferred Sales Charge (CDSC). I have reviewed countless portfolios where this fee was buried in the fine print, a future liability that investors often fail to appreciate until they decide to sell. The prevailing wisdom

Introduction In my practice, I often find that investors are hyper-aware of upfront costs but surprisingly blind to the fees that await them on the back end. A back-end load, or deferred sales charge, is a particularly insidious fee because it punishes you for leaving—for making the rational decision to sell an underperforming fund or

In the world of corporate finance and fiduciary duty, few events are as revealing as a class-action lawsuit settlement. They serve as a public autopsy of a financial institution’s practices, a costly lesson etched into a balance sheet. The case of Bacchi v. Massachusetts Mutual Life Insurance Company is a quintessential example. It is not

When clients walk into a Bank of America branch or log into their Merrill Edge account, they are met with a vast universe of investment options. Central to this universe are mutual funds, many of which carry the “BAC” or “Merrill” name. In my experience, investors often conflate the bank itself with the funds it