answersLogoWhite

0


Best Answer

True. When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC.

User Avatar

Wiki User

9y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: When people invest in mutual funds they are making loans to banks and their investments are insured by the FDIC True or False?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Continue Learning about Finance

Are mutual funds insured?

No they are not. Mutual funds are stock market investments and hence they are not insured. There is always a possibility of an investor suffering a loss if the mutual fund house makes wrong investment decisions.


When people invest your mutual funds they are making loans to banks and their investments are insured by the FDIC is this true or false?

Mutual funds accounts are not insured by the Federal Deposit Insurance Corporation. The FDIC only insures bank accounts (i.e., checking accounts and savings accounts, not mutual funds accounts). Anyone who invests in mutual funds is taking a certain amount of risk. Those funds can (and usually do) increase in value, but they can also decrease in value. If they decrease in value, that money is not going to be repaid by insurance. It is simply lost.


What are hedge funds?

Some type of pooled investments that invest's in things to make money. The rules vary depending on the manager. They are usually less strict on what to invest in vs. a mutual fund. Hedge funds can do what ever they want to for investments.


What is mutual fund how to invest in it?

mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf etc.....be informed wherever u invest and be a regular monitor of ur investments...


Why are mutual funds not insured?

Because mutual funds are stock marketinstruments and stock market investments cannot be insured. A stock market is unpredicatable and can go either way and hence insurance companies do not provide coverage against losses incurred in the stock market. That is why all mutual fund houses say:Mutual fund investments are subject to market risks. Please read the offere document carefully before investing.

Related questions

Are mutual funds insured?

No they are not. Mutual funds are stock market investments and hence they are not insured. There is always a possibility of an investor suffering a loss if the mutual fund house makes wrong investment decisions.


What are the safest government bond mutual funds to invest in from Anchorage, AK?

Ak Investment Corp,Edward Jones Investments,Hulen Investments, K & S Family Investments ,North Country Investments,Schneiter & Stiehm Planning & Investments,Denali Alaskan Investment Services,Design Investments are few of the safest government bond mutual funds to invest.


Why might one invest in mutual funds?

One might invest in mutual funds to get good returns for their money. The whole idea is to make a profit and mutual funds enable one to gamble on investments.


When people invest your mutual funds they are making loans to banks and their investments are insured by the FDIC is this true or false?

Mutual funds accounts are not insured by the Federal Deposit Insurance Corporation. The FDIC only insures bank accounts (i.e., checking accounts and savings accounts, not mutual funds accounts). Anyone who invests in mutual funds is taking a certain amount of risk. Those funds can (and usually do) increase in value, but they can also decrease in value. If they decrease in value, that money is not going to be repaid by insurance. It is simply lost.


What are hedge funds?

Some type of pooled investments that invest's in things to make money. The rules vary depending on the manager. They are usually less strict on what to invest in vs. a mutual fund. Hedge funds can do what ever they want to for investments.


How can one invest in Green mutual funds?

By logging into their websites, and buying stocks you can invest in them. By searching Green Mutual Funds online, many websites allow you to invest into this, making it very easy to get hold of and invest your money into it.


What is mutual fund how to invest in it?

mututal fund represents a vehicle for collective investments....an individual who cant invest directly in securities market cantake help of mutual fund to invest on his behalf..in nutshell it is indirect investing.....the way to invest is through a mutual fund like kotak mf/ icici mf/uti mf/ hdfc mf etc.....be informed wherever u invest and be a regular monitor of ur investments...


What is a mutual fund Is it a safe investment?

A mutual fund is when a company takes money from many investor's and pools it together to invest in stocks, bonds and other assests. Mutual Funds can be risky because they are not insured by the FDIC.


Why are mutual funds not insured?

Because mutual funds are stock marketinstruments and stock market investments cannot be insured. A stock market is unpredicatable and can go either way and hence insurance companies do not provide coverage against losses incurred in the stock market. That is why all mutual fund houses say:Mutual fund investments are subject to market risks. Please read the offere document carefully before investing.


Can banks invest in mutual funds?

They can invest their own income/profits in a mutual fund but they cannot invest the depositors money in a mutual fund


Are mutual saving banks fdic insured?

are mutual saving banks be FDIC insured


How do you invest in mutual funds and get best mutual fund returns?

No one person could decide on the 'best' mutual funds to invest in, as different companies offer different incentives for consumers to invest into their businesses which would appeal to other types of people.