• 03.01.10

Six Much-Needed Reforms for the Mutual-Fund Industry

Six lessons the $10 trillion mutual-fund industry could learn from KaChing.

Six Much-Needed Reforms for the Mutual-Fund Industry

More than half of all portfolio managers tracked by Morningstar didn’t invest in their own funds during the past five years. “How are customers supposed to trust someone who appears to not even trust himself?” asks Dan Carroll, founder of KaChing, a site where professional investors share everything about their portfolios — including how much of their own money they’ve put in them — in hopes that others will pay to mimic their trades. The ideas underpinning the Palo Alto-based company should be copied by the mutual-fund industry. Here are six to start.


1. Reform the Ratings


Reform the Ratings

2. Let Information Fly


Let Information Fly

3. Cut Frivolous Fees


Cut Frivolous Fees

4. Embrace Transparency


Embrace Transparency

5. Talk to Clients


Talk to Client



6. Share Insights


Share Insights