Mutual fund sponsors need to find another way to show their worth to investors than selling their performance, says Morningstar analyst Russell Kinnel.

"The industry can do a better job of explaining how to use funds and what the risks are," Kinnel tells the Wall Street Journal's Sam Mamudi for Wednesday's Fund Track column. "They need to do a better job of being stewards and not salesmen."

"The story's been, these are brilliant investors and you should look at all this money that you'd probably make, too [if you were invested in the fund]," he said. "But that's too misleading for a massive industry to be based on."

Mamudi's column is a kick-off to this year's Morningstar advisor conference held through Friday in Chicago. Among the speakers scheduled for the event are: Bill Gross (PIMCO), Jeremy Grantham (GMO LLC), Marty Whitman (Third Avenue Funds), Jack Bogle and John Rogers (Ariel Investments LLC). 

Stay ahead of the news ... Sign up for our email alerts now
CLICK HERE