You need to understand what a Mutual Fund is to understand that you need to change your question. Mutual Funds are comprised of several individual funds which meet the overall funds growth objective, i.e. aggressive growth to a conservative approach. Inside this Mutual Fund, the individual funds my be removed or sold with another fund replacing it or not.
So, can a mutual fund go out of business? No. Can a Mutual Fund be closed to new funds, YES!
Contact your local Registered Representative to get more specific details.
Agent Owner, Gilmore Insurance Services, Marysville, Washington State
Can a mutual fund go out of business? Technically no, a mutual fund cannot go bankrupt. A mutual fund is a combination of stocks and bonds purchased from other companies and the government depending on the goal of the mutual fund. Usually a mutual fund has a wide distribution of funds so in the event of one or more of the investment choices within the fund fail, the fund it's self remains secure.
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So, can a mutual fund go out of business? No. Can a Mutual Fund be closed to new funds, YES!
Contact your local Registered Representative to get more specific details.