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Some $5 trillion is now held in fund accounts, three times the amount at the beginning of the decade, and one-third more than is kept in banks.Saturation pointOne consequence of this success is that almost everybody who can own a mutual fund already does.
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That gain can be explained by dividend income from shares held in funds and has little to do with stock appreciation, Trim Tabs says.
Most of that money is held in funds tracking American markets, but for cost-conscious and globally minded investors, many index funds focus on foreign markets.
Cindy McCain, the wife of the Republican presumptive nominee for president, has sold off at least $2 million she held in funds with investments in Sudan businesses.
All of these are hard for outsiders to detect.Dog for sale, $10mThe largest area of transgression, and one that is almost certain to arise more in the future, is the incorrect valuation of securities held in funds.
The losses were tied to securities issued by Lehman Brothers and held in the fund's portfolio.
They can then profit from news about companies whose shares are held in the fund.
On Tuesday, Commonfund said that by selling some government bonds and other assets held in the fund, it had succeeded in raising its liquidity to 26percentt.
For example, he said, the agreement should say who is responsible for maintenance of the property and whether money should be held in a fund for repairs.
Meanwhile, some critics will say that the vast majority of investors' money is held in active funds, and that some active fund managers have delivered market-beating returns.
There, it was held in investment funds.
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