Misplaced marketing: New mutual funds: misplaced marketing through consumer misdirection

Abstract

Uncovers some of the misplaced marketing techniques of investment companies. Suggests that because the most valuable marketing tool for a new mutual fund is a strong performance record many companies provide “illusions” of certain returns. Asserts that new funds are launched directly to the public with preferential treatment at the expense of other funds within the family or by providing a period of “incubation” for the fund. However, the consumer is often misdirected as the funds often revert to average returns after a couple of years. Believes that government intervention is required in this marketplace.

Citation

Feuerborn, T.A. (2001), "Misplaced marketing: New mutual funds: misplaced marketing through consumer misdirection", Journal of Consumer Marketing, Vol. 18 No. 1, pp. 7-11. https://doi.org/10.1108/07363760110366434