Under Fire
Is it still possible to invest without getting burned?
For decades, we've been sold the notion that long-term investing is the best way to build a nest egg, and that mutual funds are the best vehicle for long-term investing. The fact that funds have been largely scandal-free has helped to cement that perception. The past year, though, has sorely tested that image.
First, securities regulators honed in on Morgan Stanley for using incentives to induce its brokers to sell the company's own mutual funds rather than giving impartial advice to clients. Several brokerages were also nailed by regulators for peddling more lucrative (for the broker) mutual fund Class B shares rather than more affordable (for the investor) Class A shares. And then last fall, we found out some mutual funds were letting the big guys eat into our returns through market timing and late trading schemes that benefited them.
4th of July Subscription Sale - Unlock this subscriber exclusive article and more for 20% off today.
Access all Entrepreneur content with no ads, unlock discounts, and get exclusive advice only available to our subscribers. Plus, our magazine delivered straight to your door.
Get 20% off an annual subscription today. Just use code SAVE20 at checkout.
Entrepreneur Editors' Picks
-
Formerly Enslaved Black Man Nearest Green Taught Jack Daniel Everything He Knew About Whiskey. Today, the Founder of Uncle Nearest Premium Whiskey Celebrates His Legacy.
-
Leadership Lessons From the Exclusive Creativity School That 'Packs 5 Years Learning Into 5 Days'
-
3 Expert-Backed Strategies for Staying Calm in Times of Confrontation
-
The CEO of Wayfair Has Helped Revolutionize Digital Shopping for 20 Years. Here's How He Handles Rocky Economic Conditions.
-
This Founder Went to Prison When He Was 15 Years Old. That's Where He Came Up With the Idea for a Company Now Backed By John Legend.
-
3 Signs You're Letting Pride Get in the Way of Being Successful
-
Chip and Joanna Gaines and Shonda Rhimes Found Incredible Success By Using This One Entrepreneurial Strategy. Here's How You Can Too.