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Bad performance mutual fund? |
Just curious - if a mutual fund is doing very bad, will it actually be taken off the stock market just like a penny stock that's not doing good and gets booted? What normally happens to bad performing mutual funds is that they get merged into other mutual funds. This happened to Strong Funds several years ago. They name should have been Weak Funds and now they are part of another fund company. Mutual fund is dependant upon the assets (shares) it has bought in its portfolio. No a mutual fund generally could not perform that badly- it can merge or change the name but it is not taken off the market for bad performance. Mutual funds are occasionally closed and liquidated, but not very often. More often, they are merged with another fund. |
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