Mutual Funds

Mutual Fund Scandals

Unfortunately there have been incidences in which mutual fund manages have traded stocks at prices other than reported to the investor. Example is the use of closing share price for reported trades for the day the investor request an execution of his shares. Whereas the mutual fund manager may have received a more advantageous share price before the closing share price is set. The mutual fund manager retains the additional gain for himself or his firm. Since there are usually large volume trades the gain may be substantial even with a fraction of a share price.