When new funds are launched, would-be investors are usually bombarded by all kinds of promotions, as companies aim for a strong point of entry into their products. But according to a recent survey, the investors are not always impressed.
"There are so many promotions about all these new products that oftentimes investors are left feeling overwhelmed," said Tanya McDonald, who heads up the firm conducting the study, the Chicago-based Spectrem Group.
The 250 people polled, all of whom reported to have more than $500,000 of investable assets, were often left confused by fund promotions until they spoke with an investment adviser. The questions about the promotions were secondary to the surveys actual purpose to determine investors understanding of the fund market.
According to McDonald, as quoted in Defined Contribution News, there is still "a definite gap in understanding" the fund market.