Protection from theft.

Trent · Newbie Joined: 18 Jan 2009 Posts: 1

If I purchased a mutual fund through Vanguard or Schwab, what is my protection from fraud, such as the money manger just stealing the money.

Some of the funds are set up by Vanguard and Schwab, some are not.

Is there more protection from theft purchasing a fund set up by Vanguard or Schwab?

If the money manger just steals the money I guess the investor is just out the money?

rffrydr · Posted: Wed Jan 21, 2009 2:14 pm Post subject:

Vanguard and Schwab are insured six-ways to sunday. Additionally you can sue. The trick is how do you know you're being cheated? As these are institutions it would be a challenge to pull something Madoff off...but then there's Bill Miller.
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