Can you lose all your in if things get bad enough?

 

  • jbcarrel 5:08 pm on August 9, 2010

    Mutual funds are stocks that are managed by a broker on behalf of others. The values of your mutual funds are determined by the specific stock that are in each portfolio.

    That means your portfolio value has dropped just like almost everyone else’s. When the value of each stock in your portfolio increases, your mutual fund will perform better. My recommendation is to not watch the fund value every day, because they are designed to perform over a long period. Set them aside for now and enjoy your life.

    If you are too uncomfortable with having your assets in mutual funds, then try precious metals or CD’s. They are more conservative investments.

  • Pray for Matt Bryant (Luke 6:37) 5:08 pm on August 9, 2010

    It’s highly unlikely. It would have to be a really bad mutual fund, I mean REALLY BAD, for that to happen. Mutual Funds invest in many different companies, so all the companies it’s invested in would have to fail.

  • Jay S 5:08 pm on August 9, 2010

    Mutual funds are merely a pool of money that is then invested in some underlying asset like stocks, bonds, etc.
    So the value of the fund goes with the value of those assets.
    The odds are against losing it all due to the sheer number of assets that the money should be divided in to, but all funds are different.

  • Net Advisor 5:08 pm on August 9, 2010

    Not very likely in broad based diversified funds.

    Sector funds have more risk due t the concentration of investments in a single sector.

    The likely scenario is the fund will rise and fall with the market.

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