A proprietary fund is a fund that a financial services provider creates, manages, and distributes. For example, let’s say, hypothetically, you have a 401(k) or an individual retirement account (IRA) with a firm called Company X. If they offer a fund with “Company X” in the name, it is probably proprietary to the firm. But sometimes a proprietary fund has a name that is different from the company that runs it.
Why should you care? Since the company that runs the fund is also the company selling it to you, they may be doing so in a way that’s great for them, even if other funds might be better for you.If you are considering investing into a fund, here are some questions you can ask the firm that is helping you:
- Is this a proprietary fund?
- How do the fund fees compare to industry averages?
- Are you receiving a commission for selling me this?
- Is there an indirect incentive or are you meeting a quota by selling me this?
If the proprietary fund has higher than average fees, or if the person helping you buy the fund receives a commission or other benefit by selling you the fund, then the fund may not serve your best interests.
None of the funds in Just Futures’ lineup are proprietary.
Hungry for more knowledge? Read on if you’re thinking about how to change your investment strategy during a recession.
If you don’t have a retirement investing account, or if your employer contracts with a different retirement plan provider, we’d love to show you Just Futures’ services! Contact us: info@justfutures.com.
~Lisa, Manager of Coalitions and Worker Power
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Published July 16, 2025
