In the choice of equity funds, investors often rely on brokers’ recommendation instead of conducting rigorous analysis. Therefore, broker’s fund recommendation has a great importance from the perspective of investor protection. We examined the characteristics of broker-recommended equity funds and their performance. We have found that funds with front-end loads, and/or funds of asset management firms with no affiliated brokerage companies are more likely to get recommendations from brokers. And funds of large asset management companies get more recommendations than those of medium or small management companies. The performance of those recommended funds, however, turned out to be inferior, implying that brokers’ ability of fund selection is not reliable. The inferior performance of recommended funds, however, is not due to brokers’ intention to subsidize affiliated asset management company considering that recommended funds of affiliated asset management companies record better performance than those of non-affiliated companies. Especially, when the seller recommended the new fund of the affiliated asset management company, the performance is better. This result suggests that a broker plays a role of mitigating the information asymmetry of new funds through information transfer from affiliated fund managers.