It is almost impossible to lose money in a mutual fund as the result of fraud or the mutual fund company's bankruptcy.

Question

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Mutual funds are regulated by the Securities and Exchange Commission (SEC) and required to have independent trustees who oversee the management of the fund. Additionally, mutual funds are required to hold the assets of the fund in a separate account from the mutual fund company, which provides an added layer of protection. This makes it highly unlikely that an investor would lose money in a mutual fund as the result of fraud or the mutual fund company's bankruptcy. However, it's important to note that all investments carry some degree of risk, and a mutual fund can still lose value as a result of market fluctuations or other factors.

It Is Almost Impossible to Lose Money in a Mutual