“General securities” products are publicly traded issues, including:
Policies. Effective July 1, 2020, Mutual Securities, Inc. has adopted the following policies regarding general securities transactions:
Download a PDF of this page.We are not a registered investment advisory firm. Some of our registered representatives are dually registered and associated with a registered investment adviser that is either affiliated or unaffiliated with us. If your registered representative is dually registered with anSEC registered investment adviser, that firm will be required to deliver their Form CRS to you. You should carefully review their Form CRS to determine what general securities services, if any, may be offered to you.
Clearing Firm.We introduce all brokerage accounts holding general securities products to our clearing agent, National Financial Services, LLC, member FINRA, SIPC.
You should consider the effect that fees and expenses will have when you invest in a mutual fund, exchange traded fund or unit investment trust. Be sure you understand all the charges before you invest. They can significantly reduce the return the return on your investment.
Even small differences in fees can translate into large differences in returns over time.
Example: If you invested $10,000 in a fund that produced a 5% annual return before expenses and had annual operating expenses of 1.5%, then after 20 years you could have roughly$19,612. But if the fund had expenses of only 0.5%, then you would end up with $24,000, a 23% difference.
Classes of Mutual Funds
Many mutual funds offer more than one class of shares. Each class will invest in the same portfolio of securities and will have the same investment objectives and policies, but they will have different shareholder services and/or distribution arrangements with different fees and expenses. Because of the different fees and expenses, each class will likely have different performance results. A multi-class structure offers you the ability to select a fee and expense structure that is most appropriate for your investment goals. Here are some key characteristics of the most common mutual fund share classes offered to individual investors:
Exchange Traded Funds ("ETFs")
Unit Investment Trusts ("UITs")
UITs offer a variety of trusts that each have different sales charges, fees and expenses, which will vary depending on the sponsor, the duration of the trust and the type of investments held. You should review the fee table in the UIT prospectus for a list of all charges you will pay. They often include the following:
You will pay several charges when you invest in an annuity. Be sure you understand all the charges before you invest. These charges will reduce the value of your account and the return on your investment. Often, they will include the following:
Other charges, such as initial sales loads, or fees for transferring part of your account from one investment option to another, may also apply. You should ask your financial professional to explain to you all charges that may apply. You can also find a detailed description of the charges in the prospect us for any annuity that you are considering.
Tax-Free “1035” Exchanges
Section 1035 of the U.S. tax code allows you to exchange an existing annuity contract for a new annuity contract without paying any tax on the income and investment gains in your current annuity account.These tax-free exchanges, known as 1035 exchanges, can be useful if another annuity has features that you prefer, such as a larger death benefit, different annuity payout options, or a wider selection of investment choices. You may, however, be required to pay surrender charges on the old annuity if you are still in the surrender charge period. In addition, a new surrender charge period generally begins when you exchange into the new annuity. This means that, for a significant number of years (as many as 10 years),you typically will have to pay a surrender charge (which can be as high as 9% of your purchase payments) if you withdraw funds from the new annuity. Further, the new annuity may have higher annual fees and charges than the old annuity, which will reduce your returns.
Variable Universal Life Insurance
You will pay several fees and expenses when you invest in a variable life insurance policy. Be sure you understand all the fees and expenses before you invest. These fees and expenses will reduce the value of your account and may require you to contribute additional premiums to your policy to prevent the policy from terminating. Often, they will include the following:
Other fees and expenses may also apply. You should ask your financial professional to explain to you all charges that may apply. You can also find a description of the fees and expenses in the prospectus for any variable life insurance policy that you are considering.