From: darkness39@yahoo.com
Newsgroups: misc.invest.financial-plan
Subject: Re: what if the mutual fund company goes belly up
Date: Fri, 27 Apr 2007 11:26:53 -0500
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On Apr 26, 6:15 pm, Tad Borek  wrote:
> s o wrote:

>
> As others have posted the much greater risk is that Company XYZ simply
> does a lousy job managing Fund ABC, and you lose money that way -- from
> investment losses.
>
> -Tad

Tad

Presumably if a mutual fund entered into the (wrong) option or
derivative contracts, it's value could drop to zero?  That would be as
close to 'going bust' as any insolvency?

Not also for any browser.  Closed End Funds (investment trusts in UK
parlance) which use leverage (borrowing) *can* go bust, and from time
to time do: the UK had something called the 'split capital trust
fiasco' (google it) which was about CEFs launching different classes
of shares (to give some groups of investors higher income), and it
eventually all unravelling.