This is scary. At first blush this sounds like a massive “everyone will be invested in one big mutual fund” Ponzi scheme extravaganza. Here is more from the Department of Labor. An excerpt that caught my eye:
“Mutual funds pool and invest the money of many people. Each investor owns shares in the mutual fund that represent a part of the mutual fund’s holdings. The portfolio of securities held by a mutual fund is managed by a professional investment adviser following a specific investment policy.”
Isn’t that special…a government bureaucrat educating us all.
1. What does “professional” mean exactly?
2. What does “follow” mean exactly?
2. What does “specific investment policy” mean exactly?