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Registered Investment Advisors

post #1 of 2
Thread Starter 

Would love to get some help...

I plan on investing part of an inheritance from my deceased Mother in the amount of $175,000.00. I am thinking about going with Fidelity Investments in an actively managed advisory account. Have read going with a Registered Investment Advisor is best as far as fiduciary responsibility and receiving objective advice.
The prospectus proposals Fidelity sent me have the names of the Investment Advisors which are firms, and Portfolio Managers and Co Managers listed as individuals. They use a "Team Approach" when actively managing mutual fund portfolios. Using Finra.org's "Broker Check", I've searched for the qualifications of three different managers on one fund and cannot find any designation for R.I.A. (Registered Investment Advisor), for any of the three managers. Customer Service told me this morning to call Fidelty's Portfolio Advisory Service on Monday and check with them.
Would anyone on this forum have any other ideas as how to check on whether the fund managers of several of my mutual fund prospectuses have gained the designation of Registered Investment Advisor. I heard it can really make a big difference in one's returns over time by a R.I.A. having to move you into a fund that's right for you...not one that's higher commission for them.

In a mutual fund where there is a team approach in management, should I be satisfied if just one of the managers or co managers is a R.I.A. or should I be concerned if all of them aren't R.I.A,s?

Thank you for any help!

Stickerweed

post #2 of 2
Quote:
Originally Posted by stickerweed View Post

Would love to get some help...

I plan on investing part of an inheritance from my deceased Mother in the amount of $175,000.00. I am thinking about going with Fidelity Investments in an actively managed advisory account. Have read going with a Registered Investment Advisor is best as far as fiduciary responsibility and receiving objective advice.
The prospectus proposals Fidelity sent me have the names of the Investment Advisors which are firms, and Portfolio Managers and Co Managers listed as individuals. They use a "Team Approach" when actively managing mutual fund portfolios. Using Finra.org's "Broker Check", I've searched for the qualifications of three different managers on one fund and cannot find any designation for R.I.A. (Registered Investment Advisor), for any of the three managers. Customer Service told me this morning to call Fidelty's Portfolio Advisory Service on Monday and check with them.
Would anyone on this forum have any other ideas as how to check on whether the fund managers of several of my mutual fund prospectuses have gained the designation of Registered Investment Advisor. I heard it can really make a big difference in one's returns over time by a R.I.A. having to move you into a fund that's right for you...not one that's higher commission for them.

In a mutual fund where there is a team approach in management, should I be satisfied if just one of the managers or co managers is a R.I.A. or should I be concerned if all of them aren't R.I.A,s?

Thank you for any help!

Stickerweed



1) Being a registered investment advisor does not mean you get better returns. It just means the guy took a course (the Series 7 and Series 66) which gives him those credentials. Its like taking a realestate course so you can sell houses.

 

2) A mutual fund manager will have all certifications required of him to be in such a position. There is no such thing as a un-certified fund manager working at Fidelity.

 

3) The most important thing you should be aware of:  Majority of mutual funds fail to beat the S&P. This means all the fees you pay to be in the fund and all the fancy designations the fund manager may have are all worth zip if the fund does not even beat the index.

 

You can plot the performance of a mutual fund against the S&P on a site like bigcharts.com

 

Here is the FEQIX (Im just using some random fund as an example, the Fidelity Equity income fund) vs the S&P index over the past 5yrs

 

Mutual fund vs S&P

 

As you can see, even with their fancy RIA certification and fancy Harvard business school degrees, they had a tough time beating the S&P.

 

Over longer periods of time this may change, but you need to define your investment time frame to see how long and what kind of  risk tolerance you have.

 

 

 

 

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