NO-LOADS CONSISTENT HISTORICAL RETURN CONSISTENCY OF PORTFOLIO MANAGEMENT CONSISTENCY OF OBJECTIVE IN INVESTING STYLE COMPETITIVE TOTAL EXPENSE FULL DISCLOSURE OF INVESTMENT PHILOSOPHY DETERMINE A FUND'S LEVEL OF SERVICE Quick turnaround in answering questions Timely and accurate statements Full dissemination of investment philosophy "Which fund is doing best today?" asks Mrs. Flanigan at her first meeting with you. "The XYZ Small-Cap Emerging Markets Fund was up 141 percent last month," you respond. "But this fund may not be best for you." Chasing the fund with the best record in the previous month is not in the best interests of clients' portfolio. "Why not?" she demands to know. "Our firm specializes in creating comprehensive financial plans that reflect your goals, financial tolerance, and the various other risks -- time, tax, investable funds, liquidity, and legal -- that your situation involves. Chasing whichever fund has the best record last month is not our business, nor is it conducive to your financial health," you explain. After a few more meetings during which you learn about her life, dreams, finances, and teach her about your services and the markets, it is time to choose which assets are best for Mrs. Flanigan. You decide that 60 percent should be in equities and 40 percent in fixed income. The equity portion is further broken into 50 percent large-cap income equities, 30 percent growth small-caps, and 20 percent international. That makes 30 percent of the total portfolio in the large-cap equity income classification (60 percent equity times 50 percent large-cap equity income).