Do independant investment managers receive sales loads for each fund they invest in?

If i were to invest in funds with the guidance of an independant advisor (feel as thought they give unbiased advice compared to directly going to the fund), would they recieve sales load fees for each fund my money is invested in? Is it normal for my money to be invested in a number of funds (risk diversification)? Also, how would the manager compute monthly performance accounts if my money is invested in numerous fund houses products? Sorry for the long question! Hope someone can help out and thank you in advance

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One Response to “Do independant investment managers receive sales loads for each fund they invest in?”

  1. C B says:

    It depends on what type of agreement you have with the investment manager. Most often, they are paid commissions on the purchase or sale of fund shares (depending on share class) and on going revenue sharing such as 12b-1, record keeping, sub tier adviser, etc. fees that mutual fund companies pay to investment managers.

    The strategy and how the investments are diversified should be discussed with you so that you understand what level of risk you will be subjected to and whether you are comfortable with that strategy.

    The money manager should have software and feeds from data compilers, including Reuters, Morningstar, McGraw Hill Financial (S&P 500 index), etc. plus data from the fund company so that they can prepare your statements.

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