Good Funds Gone Bad
Should you dump shares of fund companies implicated in scandals?
The finer points of late trading and market timing might be lost on the majority of mutual fund investors, even after months of scandal-bearing headlines, but the bottom line is not: Namely, that big investors were given breaks that hurt the little guy. Everybody can grasp that much, and securities regulators and politicians are frothing at the mouth to hold fund houses accountable. That's fine for them, but what should you do if you happen to invest in a fund that's been publicly tarnished by the growing scandal?
After all, it's not as if a fund is going to become worthless the way Enron Corp. shares did when the bottom fell out. A fund's net asset value (NAV) is calculated daily by adding up the value of its investments and dividing by the number of shares outstanding. Unless most of a fund's investments go bad all at the same time, its NAV won't drop off a cliff no matter what its parent company says or does.
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
Tory Burch Built a Brand Around Empowering Women. Now Her Foundation Is Furthering Her Mission: 'How Do We as a Company Have a Positive Impact on Humanity?'
This Founder Had to Play College Basketball in Men's Shorts and Shoes, So She Launched an Athletic Clothing Company Named After the Now 50-Year-Old Title IX Act
Is Beyoncé's 'Break My Soul' the Theme Song of the Great Resignation?
You're Probably Falling for All of Amazon Prime Day's Psychological Sales Tactics. A Marketing Professor Reveals Them — and How You Can Actually Get the Best Deal.
Comedian Paul Virzi: 'If You're Not Authentic, You Have Nothing'
Struggling to Come Up With Creative Ideas? Try Doing This.
Picking a Winning Emerging Brand Is How You Get Rich in Franchising. Here's How to Spot One.