chinaco
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
- Joined
- Feb 14, 2007
- Messages
- 5,072
The recent Madoff debacle and others that have occurred over the years shows what can happen if too many eggs are in one basket. Of course, Madoff was running without much SEC scrutiny.
I have read that Mutual Funds are organized as separate entities and shielded from one another and the Funds management company if it goes bankrupt. Plus each funds board must have members that are independent of the investment advisers.
When it comes to individual mutual funds and/or fund management companies, there could be some management risk. Be it malfeasance (because of opportunity) or just stupid mistakes. Are the built in measures established by the Investment Company Act of 1940 enough?
I have read that Mutual Funds are organized as separate entities and shielded from one another and the Funds management company if it goes bankrupt. Plus each funds board must have members that are independent of the investment advisers.
When it comes to individual mutual funds and/or fund management companies, there could be some management risk. Be it malfeasance (because of opportunity) or just stupid mistakes. Are the built in measures established by the Investment Company Act of 1940 enough?
- How concerned are you about it?
- 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?