Mutual Funds Lose Everything?
Is it risky to have all of one's money invested in one fund family?
ANSWER: Your money is not just invested in one company – it is actually in hundreds of companies. One mutual fund is spread out over 80 to 200 different companies’ stocks. For example, if you have your 4 different types of mutual funds all in Fidelity, your investment is spread out over 320 to 800 different companies. Fidelity is just the fund family, but your investment is not in them.
There has never been a growth stock mutual fund company or fund family that went broke.