The image shows the increase in sales of mutual fund assets since the invention of the Deferred Sales Charge purchase option.

The Deferred Sales Charge (DSC) was (and still is) the perfect invention ( circa 1987,)  to allow mutual fund salespersons to tell their clients with a straight face that “You don’t pay a thing for this investment, the fund company pays me to offer this product to you…..” or other clever words to that effect. They are also told that advice is free.

There are many clever ways that information is  “disclosed”  to clients behind closed doors and many products no one would ever knowingly purchase if facts  were presented " fairly, honestly and in good faith" to them. 

The  vast majority of clients aren't  clearly told about the DSC and only find out about DSC's when they need to access some of their money or see the poor performance of the fund that was recommended to them and want out. 

It is  unfair to pin the mistake on the clients , since in most cases what they were told likely omitted essential information.

DSC sold mutual funds are an effective way for a fund salesperson  to make a quick buck and handcuff their clients to them for 6 or 7 years. The loser, as usual, is the trusting investor.