Mutual Funds: Regulation That Works

In just a few years, mutual funds have taken their place among the most powerful and dynamic forces in the U.S. financial system. They have given the small investor access to a wide array of investment opportunities that were once available only to investment professionals and the rich. That has helped small investors increase the return on their savings while lowering their risks. By pooling assets, mutual funds have liquefied once relatively illiquid investments such as municipal bonds and the stocks of fledgling companies, thus lowering the cost of capital for both business and government. For many individual investors and businesses, mutual funds have evolved into an attractive alternative to the established banking system.

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