August 03, 2004

Why Invest in Funds?

The Motley fool carries this story on Franklin's recent settlement with the Securities and Exchange Commission. The Fool writes

The SEC found that Franklin, like so many others in the $7.6 trillion fund industry, abetted market timing, a technically legal but highly unethical practice that allows some clients to rapidly trade in and out of funds, effectively stealing from long-term investors who would typically pay big penalties for early redemptions.
But the settlement is a joke! No concessions, no agreement to change business practices, and a measly $50 million in fines. They didn't even have to admit wrongdoing! So why should we, the average investor, trust our money to mutual funds?

August 3, 2004 in Mutual Funds | Permalink | Comments (0) | TrackBack