Align the Interests!

Any business where the interests of consumer and producer are not aligned, is begging to be disrupted.

A mutual fund house is not sufficiently incentivized to grow money invested in the fund. It is not their money. People working in finance can make more money by sales, than making your product better. You make more money by selling your mutual fund units than making better investment decisions using existing cash. It takes years to determine whether a investment decision is right or not. An employee working in a finance company wants promotion. How can the management determine which employee is better? How can an employee impress their boss? Sales. Just sales. Interest of Fund manager and an individual who invested in the fund are not aligned. If 50% of the money is invested by the fund itself, investment decisions would be significantly different.

A real estate agent can make more money by selling you a shitty house at high price than selling you a good house and lower price. They don’t have to care about customer satisfaction, because customers are not recurring. People buy houses only few times in their lifetime. Interests are not aligned.

A university can make more money by selling you their shitty program at high price than actually finding what will help you the most with your career. Customers are not recurring here and it will take years to determine the true value of your education. Interests are not aligned here. Universities are more incentivized to sell than actually delivering customer utility.

Private universities are in the same league as an investment house and real estate.