The Mutual Fund Industry Sets the Record Straight

When the chairman of a Washington, D.C., trade group takes "the opportunity to confront some misconceptions with reality," it's usually time to get out the bull meter.

This was my expectation at an industry conference last week where Terry Glenn, president of Merrill Lynch Mutual Funds and chairman of the Investment Company Institute, the trade organization for fund management companies, explored some basic "facts" about mutual funds. (See a transcript of his speech, here.)

I was pleasantly surprised that the bull meter barely registered and that, for the most part, Glenn provided a sorely needed expose of some mutual fund myths that have recently gained public acceptance.

ICI Fact #1: Most Fund Shareholders Trade Infrequently

...