Quote:
Originally Posted by chinaco
Are the built in measures established by the Investment Company Act of 1940 enough?
- How concerned are you about it?
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My impressions:
- board is useless and not independent at all - assume there is no board
- shielding does not necessarily work
Example: see articles about The Reserve (the oldest money market company) trying to use investor money to pay the lawyers to defend the management - and that's for both money market fund that broke the buck and a mutual / bond fund related to it (ryptx/rypqx).
Quote:
Originally Posted by chinaco
- If you are concerned, how do you deal with it? Do you use multiple mutual funds? Multiple Fund companies (where you actually have specified amounts spread to mitigate risk... as opposed to it just turned out that way.). For example: did you split your assets evenly between VG and Fido or others?
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I only have mutual funds in 401(k) now (foolishly thinking my MegaCorp would do something if one of their chosen funds tried to pull "The Reserve"), but perhaps I will switch these too. I use ETFs for the rest, but perhaps same concerns apply there too; so I don't have a good answer here. Oh yeah, I also have individual stocks themselves - I guess this does not have the extra man-in-the-middle risks :-)