Where Disciplined Investing Meets Forward Thinking

ACCOUNTABILITY |TRANSPARENCY | SOPHISTICATION

Titan Investments

Why Mutual Funds Fall Short

Titan Investments partners with clients to develop and achieve their story. We know, however, that mutual funds should not be a part of that. Mutual funds are unsophisticated, costly, generic, and are conflicts of interest.

Little Conviction

Mutual funds are active investments, with portfolio managers buying and selling positions to beat their stated benchmark. However, this can be problematic. First, either mirroring or outperforming a benchmark (such as the S&P 500) typically produces a fund that does not overweight convictions or sectors (because of regulation) and ends up looking like the benchmark itself rather than markedly different. Why not own individual securities or the benchmark instead?

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More and More Fees

Mutual funds add expenses to one’s investments. Typical ongoing costs of owning mutual funds average between 0.5 – 1.0% but can exceed 2% in some cases. This is in addition to possible fees up front or upon selling the fund too early. Next, if a mutual fund is a “fund of funds,” which means XYZ mutual fund A owns XYZ mutual fund B and/or C in that fund, there are layered fees beyond the cost of ownership.

Here’s one scenario: a financial professional charges you 1% annually on your account to help you with a plan or your investments. They invest your money in mutual funds that charge an ongoing 1% expense ratio, and a 5.75% load (or buying) charge … now you are paying 7.75% initially and at least 2% annually on your investments. Why take on that extra cost?

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Generic Solutions

Mutual funds, specifically target-date funds, are generic in their customization. They rely on simple variables, sometimes only one variable, for instance your age. However, one 40-year-old is not the same as another when considering things like family, career, financial health, etc. Therefore, owning mutual funds or generic target-date, lifestyle type funds in your retirement accounts does not suit you needs. Why own them?

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Misaligned Incentives

Mutual funds can incentivize financial professionals to push or sell their funds. This can be done more innocently through speaking engagements, education events, swag, etc. More important, many large, national brokerage firms, recognizable names, receive kickbacks from mutual fund companies. This occurs to the excess of some companies’ revenue being 10-30% based on mutual fund and other investment product kickbacks. Why work with companies or “professionals” that are incentivized on what is in their interest not yours?

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Our Benefits

Titan Investment Management brings institutional solutions to individuals. Our research-oriented, disciplined investment model combines appropriate equity and fixed income vehicles for clients, resting on three main principles.

Accountability

We remove the “middleman” of mutual funds and third-party investments. Investing through individual equity positions demostrates Titan’s investment acumen, removes layered fees & additional costs, and optmimzes tax consideration. Further, Titan is accountable through the financial planning process, parterning with clients as they achieve their financial goals and peace of mind.

Transparency

First, our transparent fee structure is fully laid out to prospects and clients, delivered quarterly. Additionally, we offer two different avenues to provide service: a fee-only asset management and financial planning partnership, or a montly subscription-based relationship for those early in their career and/or working toward a solid financial footing. Just as important, Titan is transparent in our investment philosophy such that we are invested in the exact same equities as our clients.

Sophistication

Our 3-tiered equity model brings quantitiatve (econometric and algorithmic) and qualitiative (fundamental) analysis together to actively and tactically outperform the global market. This leads to in-house equity and fixed income selections that demonstrate Titan’s commitment to rigorous asset management & our investment process.

At Titan, we know you deserve better.

Contact us

We look forward to hearing from you and beginning to work on building your financial future.

Get in touch

Address:

1533 W. Oak St. Suite 120 Zionsville, IN 46077

Phone:

(317) 344-2169

Email:

bhorner@titaninvestmentmgmt.com