|No salesmen or wholesalers allowed!|
Most people don't know about a very uncomfortable relationship, one that cry's out for conflict of interest. It is the relationship between your stockbroker / financial advisor and mutual fund wholesalers. Free dinners aren't really free.
Mutual fund wholesalers make money by promoting the fund family that he/she represents to stockbrokers / financial advisors. The more dollars that flow into that fund in a certain territory, just like any other salesman, the more money they make (and thats fine if you are selling widgets but not financial products).
Wholesalers will often offer incentives to stockbrokers / financial advisors in the form of higher commissions, sponsored events, etc, to have that stockbroker sell a particular fund to their clients.
Worst of all, wholesalers usually report a bump in sales at the end of every sales period or commission month proving conclusively that stockbrokers / financial advisors are not necessarily looking out for your best interest.
Many stockbrokers I worked with would hold on to cash to wait and see which wholesaler / fund family was offering them the best incentives that particular commission month and then park client money there.
It is a very unsavory relationship yet it continues to thrive.
The best way to know that all investments are made in your own best interest is to invest by yourself and for yourself.