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Rating:Should Fund Ads Come with a Stronger Warning? Not Rated 0.0 Email Routing List Email & Route  Print Print
Thursday, April 22, 2010

Should Fund Ads Come with a Stronger Warning?

News summary by MFWire's editors

A study on mutual fund advertising is gaining additional media attention. In Thursday's Wall Street Journal Fund Track column, Ian Salisbury picks up on an upcoming study that finds that the disclaimer in fund ads -- past performance is not an indicator of future results -- is not a strong enough warning to stop investors from making poorly informed choices.

The article follows a Forbes piece from Monday on the same topic.

"Ads appear in bull markets," Wake Forest's Ahmed Taha, one of the study's authors, told the WSJ. "[They're] really encouraging bad investment behavior."

Fund marketing is also being addressed in Senator Chris Dodd's financial-overhaul bill. 

Edited by: Daniel Tovrov


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