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If you choose to have the dividends and capital gains distributions paid by the fund reinvested into more shares, those additional shares are purchased at NAV and no sales charge is paid. The reinvestment of distributions is one of the two ways to buy load fund shares without paying and sales load.
100%. The information is available and they can give an "In general...but let me verify that information for that particular fund" answer. Should take no longer than 5 minutes in the case that it is an older grandfathered fund.
the answer is a poor customer service rep . i have used fidelity for 30 years and can't say i ever got a poor answer or no answer . there are crappy , lazy employees in every business .
Not saying that the Fidelity Rep could not have researched more but in all reality Fidelity is a discount broker, meaning the accounts are self directed & it is up to the investor to do their own research. Fidelity is not the one that "sold" the product so how is it their responsibility to know all the aspects of what products their advisor sold them?
It almost sounds like being sold a Chevy and then asking their Uber driver ( who owns a Toyota) how does the Chevy work?
Not saying that the Fidelity Rep could not have researched more but in all reality Fidelity is a discount broker, meaning the accounts are self directed & it is up to the investor to do their own research. Fidelity is not the one that "sold" the product so how is it their responsibility to know all the aspects of what products their advisor sold them?
It almost sounds like being sold a Chevy and then asking their Uber driver ( who owns a Toyota) how does the Chevy work?
That's a terribly attempted analogy. Fidelity process the reinvestment for the franklin fund in this case so they should absolutely know if they are charging the customer and getting paid.
Not saying that the Fidelity Rep could not have researched more but in all reality Fidelity is a discount broker, meaning the accounts are self directed & it is up to the investor to do their own research. Fidelity is not the one that "sold" the product so how is it their responsibility to know all the aspects of what products their advisor sold them?
It almost sounds like being sold a Chevy and then asking their Uber driver ( who owns a Toyota) how does the Chevy work?
While I agree that the accounts are "self directed", and it is ultimately down to the investor to understand and find the answer. This is one where it doesn't matter where the fund comes from (of course there are always exceptions, like the grandfathered clause), this is to use your analogy like going to a mechanic and asking what are the pad thingies that help stop the car. Doesn't matter make or model or year...it's a basic question. That is what they got their licenses for. And if they need to verify it only takes a few minutes to check, so as a Registered Representative IT IS their responsibility to know the answer.
Also, I know people like to say Fidelity & Schwab & TD are all "discount" brokers, but the range of services they provide, the breadth of products, investments and custody roles they offer they are anything but. And to justify that, the JD POWER awards group they're in...
Right there with Wells, Merrill, Morgan Stanley and UBS, etc. who are outright wire-houses. Just b/c they charge a lower commission for trading, doesn't mean they are "discount" anything. If anything they should be called "premium" brokers, b/c you can get most of everything a wire-house can at 1/2 the cost.
"Fidelity process the reinvestment for the franklin fund in this case so they should absolutely know if they are charging the customer and getting paid."
Fidelity did not sell the product nor did & is Fidelity receiving the fee's. The Advisor was/ is.
"Also, I know people like to say Fidelity & Schwab & TD are all "discount" brokers, but the range of services they provide, the breadth of products, investments and custody roles they offer they are anything but. And to justify that, the JD POWER awards group they're in..."
Fidelity would know Fidelity funds and would have access to other funds that the allow client to purchase such as Vanguard funds for a fee but I do not know of any loaded funds that Fidelity "sells" as Fidelity does not sell products nor do their reps.
"Fidelity process the reinvestment for the franklin fund in this case so they should absolutely know if they are charging the customer and getting paid."
Fidelity did not sell the product nor did & is Fidelity receiving the fee's. The Advisor was/ is.
The original sale of the product isn't relevant, if fidelity is processing the reinvestment they should absolutely know if they are charging a customer there is no wiggle room here. There is no reason for you to argue this at all
Quote:
"Also, I know people like to say Fidelity & Schwab & TD are all "discount" brokers, but the range of services they provide, the breadth of products, investments and custody roles they offer they are anything but. And to justify that, the JD POWER awards group they're in..."
Fidelity would know Fidelity funds and would have access to other funds that the allow client to purchase such as Vanguard funds for a fee but I do not know of any loaded funds that Fidelity "sells" as Fidelity does not sell products nor do their reps.
Fidelity would be required to know the information to any security they were processing transactions for even more so if they were getting paid.
but fidelity should have been able to answer it without letting the customer go[/QUOTE]
this was the action of a particular individual on their own who was lazy , "not fidelity" i have never found a large company that did not have some in the ranks .
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