Funds: Mutual Funds, Closed-End Funds, Mutual Fund Definition
A mutual fund is a type of professionally-managed collective investment scheme that pools money from many investors to purchase securities. Most investors own at least one Fund, which is short for mutual fund or closed-end funds. Investors routinely own Funds in brokerage accounts and 401k investments. There are countless Fund choices to select from. There are Funds that offer blends of stocks, bonds, or any combinations thereof. There are even mutual funds that track certain indices, sectors, different size companies, and countries to name a few. Although investors should be and are often provided with a prospectus for each Fund investment, most investors rely upon the advice of their investment professional when selecting Funds for investment. The investment professional must understand the underlying strategies, risks, features and costs of every Fund that is recommended to clients.
Mutual Fund Risks | Mutual Fund Problems
Unfortunately, most investment professionals fail to conduct adequate due diligence prior to making mutual fund recommendations. Rather than making individualized Fund recommendations to their investors, investment professionals often recommend the same mutual fund to many clients. Investment professionals also often fail to understand how the underlying investments of a certain Fund balance with the remainder of the investments that have been recommended. Moreover, investment professionals often fail to understand and disclose how the operating fees and costs associated with a certain mutual fund will impact performance.
Legal Help for Victims of Mutual Fund Fraud
If your investment professional is making wholesale recommendations of certain mutual funds, or has recommend Fund investments that do not meet your investment objectives or risk tolerance, you may have a claim for damages. The Mutual Fund Fraud Attorneys at Gilman Law LLP, a leading securities fraud law firm, are here to help you recover damages. For a FREE consultation and evaluation of your case, please fill out our Free Consultation Form Online, or if you need to speak to an attorney right away CALL TOLL FREE (888) 252-0048 today.