Investing in mutual funds and ETFs offers an efficient solution for investors to engage in corporate governance issues. When you purchase a fund, you authorize fund managers to vote proxies on your behalf.
There is great disagreement in the financial services world if an advisor who has continuous and comprehensive management of a client’s assets should be allowed to also benefit from transactions that they recommend.
Investment fees are generally about 1% of assets under management and drop as assets rise. The critical question to ask is “Where do financial advisors add value that might exceed the 1% fee they charge?”