answersLogoWhite

0

No.

"If you buy mutual funds through a brokerage account, those funds are protected against theft by SIPC. However, if you buy mutual funds directly from a mutual fund company, they are not protected by SIPC, "because no protection is necessary," Harbeck says. Each mutual fund is set up as a separate entity, apart from the company that manages the fund. "The employees at a mutual fund don't have direct access to the assets," says Mike McNamee, a spokesman for the Investment Company Institute, which represents fund companies. "All mutual fund assets by law must be held in a trust account at a custodian bank. That is a special account, not part of the bank's assets. The bank can fail, but the trust accounts are not involved in any way shape or form in that failure," he adds." ..........

from:

= Brokerage accounts protected by SIPC = Kathleen Pender Thursday, July 17, 2008 For more information, go to www.sipc.com for brokerage accounts or www.fdic.govfor bank and thrift accounts. Net Worth runs Tuesdays, Thursdays and Sundays. E-mail Kathleen Pender at kpender@sfchronicle.com.http://sfgate.com/cgi-bin/article.cgi?f=/c/a/2008/07/17/BUJN11QA2H.DTL This article appeared on page C - 1 of the San Francisco Chronicle

User Avatar

Wiki User

16y ago

What else can I help you with?

Related Questions

Are money market mutual funds covered under sipc?

see link: http://www.thestreet.com/s/what-happens-when-a-brokerage-fails/funds/saving-money/10393483.html?puc=aoljjc


Are futures markets covered by sipc?

no


Are mutual funds covered by federal market insurance?

No. Stock Market Investments (Mutual Funds as well) are not covered by federal insurance. It covers only bank deposits


How does SIPC protect investors?

The Securities Investor Protection Corporation, or SIPC works either as a trust or court-appointed trustee to help recover funds in a missing asset case.


How do no load mutual funds work?

No load mutual funds are mutual funds that are sold directly by the investment company instead of by an investment broker. They work exactly the same as regular mutual funds.


How do fund of funds classify?

Mutual Funds are classified as * Equity Mutual Funds * Equity Diversified Funds * Equity Linked Savings Schemes * Large Cap funds * Mid cap funds * Small cap funds * Contra Funds * Sectoral Funds * Thematic Funds * etc... * Debt Mutual Funds * Bond Mutual Funds * Hedge Funds * Fund of Funds * etc...


What are some of the best mutual funds available?

There are many good mutual funds available. According to CNN, some of the best mutual funds available include the American Funds American Mutual A and Sound Shore.


What are index fund in mutual fund?

Index funds are type of mutual funds that are intended to track the returns of the market's index.Index is a group of securities that represents particular segment of market.Rleiance mutual fund has recently launched Reliance index fund whose securities are covered in Nifty and sensex


What are mutual fund shares?

Mutual fund shares are stocks of mutual funds, fractions of mutual funds just as companies have shares.


Was madoff covered by sipc?

Current news reports indicate that no trades were ever made by Madoff's advisory company using any investors' funds. Therefore, the brokerage industry was not involved in this theft. SIPC is only available to the brokerage industry which pays premiums for such coverage. Accordingly, no brokerages were involved,no premiums were paid, and no SIPC coverage is available. This is merely A confidence scheme and has no insurance coverage than one would have on A common theft unless the victim had indepently purchased coverage.


How many mutual funds were there in 1990?

By 1990, there were 3,105 different mutual funds


What is pimco funds?

Pimco funds are mutual funds. They are a type of mutual fund that gains interest over time. Pimco is a international financial institution from whom you would get these mutual funds.