SEC charges mutuals.com with fraud

[duvinnie]

Looks like the bad news for mutual fund industry is turning into the proverbial dike.
This is no longer a little bit of skimming by one or two bad apples..

http://money.cnn.com/2003/12/04/funds/fundsfire_charges.dj/

[Superfly]

1. Mutual funds are great investment vehicles

and the SEC is just doing its job of weeding out and charging those who would seek to defraud investors. I plan on continuing my DCA plan into my mutual funds through any future downturns.

[duvinnie]

2. SEC

Believe me, I wish the mutual fund industry nothing but good. After all
my retirement and kids future rests largely on what happens to this industry.
What bothers me is that this is not one isolated fund, or one specific type
of scam that is being found. It seems to be widespread, there seem to
be a number of techniques in use, and the involvement of insiders vertically
- from traders to fund executive - is broad.

As for the SEC, I have lost faith in these people. I no longer believe that they
are acting on behalf of investors, but simply to try and plug the dike so the
funds dont tank. I would suggest you read some of the accounts about what
happened at Putnam, cbsmarketwatch.com has done some excellent reporting
on this. The SEC only moved when Spitzer made them look bad - real bad.

Keep on investing, but with eyes wide open.