| Sargent & Lundy Savings Investment Plan |
| SECURITY OF MUTUAL FUNDS |
| The following question & answer
are from the September 1997 issue of "Money"
magazine. The opinions of the author, Lani Luciano, may
or may not reflect those of the SIP Committee. Q. Are mutual fund investors protected against their fund company going belly up? A. There is no blanket federal insurance covering mutual fund investors. Fortunately, the wise folks who wrote the mutual fund laws back in 1940 came up with a way to safeguard your dough. Anyone who wants to create a mutual fund (or money-market fund) most organize each one as a separate company. The assets of that company are held in your name by a custodian, usually a bank. No one but you has any legal right to tap that money. So it is safe even if the fund company, a broker who sold you the fund or the custodian itself goes broke. |
This page updated on 10/27/97