For example, commercial banks who received deposits for basic checking or savings accounts were prohibited from offering
risky investments such as mutual funds.
Not exact matches
If you put your $ 5,000 into a
riskier asset class
such as stocks (ie a stock
mutual fund) then in 6 months your
investment might be worth more than $ 5,000 or it could be worth less than $ 5,000 (possibly a lot less).
If you are investing money you don't need for a long time (ie 20 years) then you might consider investing it in
riskier investments such as a stock
mutual fund.
On the other hand, a variable annuity, which may include
investments in more
risky options
such as mutual funds, IS considered a security and requires a much higher degree of regulation.
The rules have come in the wake of changes in the
mutual fund industry,
as funds have now moved beyond the mere pooling of stocks and bonds into
riskier and more complex categories
such as alternative and illiquid
investments and leveraged
funds.
In the short term,
riskier investments such as stocks or stock
mutual funds may actually lose value.
If you put your $ 5,000 into a
riskier asset class,
such as stocks (or a stock
mutual fund), then in 6 months your
investment might be worth more than $ 5,000 — or it might be worth less.