Funds That Serve With a Smile

Funds That Serve With a Smile

Some funds treat your money with the respect it deserves

Service is the name of the game in the crowded field of mutual funds. Many funds are looking to grab market share by bending over backwards to cater to investors.

Which funds provide the best service? To find out, mutual fund research firms test dozens of mutual fund groups each year before selecting a handful that provide kid-glove service to investors. These firms look at thousands of transactions designed to test different aspects of service, ranging from routine matters, like opening an account and checking fund share prices, to whether dividends, annual reports, and tax statements were received on time. Many firms invest their own money in the funds and conduct dozens of thousands of evaluations throughout the year before awarding its excellence-in-service seal.

What should you do to get the best service from your funds? We can glean the following advice for investors:

1) Ask how you can get your money out efficiently: Ask the company if you can get a check-book and check-writing privileges so that if you want cash from your account, you can simply write yourself a check.

2) Know how your money flows: Find out beforehand what you must do to transfer money between funds or switch from reinvesting dividends to taking them in cash, or vice versa.

3) Ask who to call for advice or help: For example, funds should be able to tell you how to use your investment as collateral for a loan. Some will issue a certificate acceptable to the lender; a stockbroker, if you use one, should be able to put your account on margin.

Serving with a smile. Photo by Elena