The role of the mutual fund rep
Descride the evolution of the mutual fund industry and the impact funs have had on the financial marketplace.
Growth in demand for mutual funds is tied to the design. Investors who have minimal funds get access to a professionally managed and diversiefied portfolio at a low cost.
Mutual funds in canada grew in the 1980s & 1990s because of the declining interest rate market. Chartered banks entering the industry & also the increase in number of choices available of funds.
Explain the value of becoming a licensed mutual fund rep and how it prepares you to deal more confidently with clients to protect thier interests and provide quality advice.
indiviuals who sell financial products like mutual funds are required to meet educational, employment and work experience in order to be licensed.
meeting client needs is the focal point of the relationship and the better informed you are the greater the chance of succesful client relationships.
Dicuss the importance of providing excellent client service.
Client service means fully understanding client needs and identlifying the right solutions to satisfy those needs.
The rewards for providing excellent client service include repeat business and potential for expanding client base.
Indentify the legal, ethical and professional responsibilites of a mutual fund sale rep.
the legal responsability ensures that any investment you recommend is suitable for the client.
the ethical responsibility ensures that client interests are placed ahead of your own needs and those of your dealer.
List the 6 components of knowing your client?
Knowing the clients personal & financial circumstances, investment needs and objectives, investment knowledge, risk profile, and time horizon.
knowing the product is about understanding all the characteristics of the funds you are recommeding.
Explain how the role of a mutual fund rep plays in client relationships and explain how this role differs from that of a financial planner.
the mutual fund sales rep play the important role of ensuring that client mutual fund purchases are suitable.
And may involve educating clients on the products depending on the clients investment knowledge.
It is also important to recognize what services you cannot provide, for example financial planning.