We pick on financial advisors using American Funds because it's the most ubiquitous “legal abuse” in the business.
American Funds is the Paris Hilton of investing – it spends the most resources on self-promotion and is only famous for being famous. It really has no special talents to speak of relative to its peers. They were worthy of note back in the 20th century, but not anymore.
From the investor's point of view, there isn't anything American Funds has or does better than any other mutual fund family. So why are they so popular? It's not because of investment performance.
They're popular because they pay big money to be popular. The one thing American Funds excels in, is doing business the “American way.” Which is charging their shareholders high (semi-hidden) fees, and then spending their money on slick advertising, marketing schemes, and kickbacks to Broker Dealers and financial advisors…
Read the rest at Tools for Money.