Searching the Internet for reviews and comparisons should be your first step in choosing mutual fund software. Whether you are an investor or a broker, mutual fund software should have some key features, including accessibility, accuracy and adaptability. These considerations have different levels of importance, depending on your role as an advisor or investor. If you are an advisor, your choice of mutual fund software has to please your clients as well.
Accessibility for the investor or advisor simply means being able to access and read the information. Monitoring one’s retirement mutual fund is easier with a display that is clear and uncluttered. The capacity to access data on funds in real time is also required. For the advisor, accessibility has to combine these features in a way that allows your clients access by logging into your website or server.
Accuracy is probably more important for the advisor than for the investor. While investors may want to make sure that they are getting correct information about their investment, advisors must be certain that the mutual fund software they are using is accurate in all phases of operation. Reports, figures and breaking news all affect the recommendations of the advisor to his or her client. Fiduciary responsibility demands it.
There are many types of funds: the balanced and diversified mutual fund, the no load mutual fund and the high yield mutual fund, just to name a few. The ability of the mutual fund software to recalculate and reconfigure a portfolio based on changing needs or preferences is vital to both the advisor and investor. Both want the ability to forecast different investment outcomes by changing funds or reallocating assets. This is especially true when considering mutual fund tax consequences.
A casual investor with just one or two funds in their portfolio can probably do well by using the monitoring services available on many search engine websites. While flexible, their accuracy is limited, because they update only once a day. For the more aggressive investor, more advanced software is available through various brokers or advisors. There are of course stand-alone programs available for purchase over the Internet.
As an advisor, you should evaluate your mutual fund software choice from both your perspective and your client's, but your clients’ comfort and ease in using the interface should be your chief concern. Making inquiries about what other advisors are using and reading reviews of the software packages will help narrow your choices. Fortunately, most mutual fund software packages offer a free trial that will allow you to experience using the suite firsthand.