Alternative Mutual Funds Pose Special Risks, FINRA Warns

Law360, Chicago (June 11, 2013, 7:45 PM EDT) -- The Financial Industry Regulatory Authority on Tuesday cautioned investors to approach alternative mutual funds with care, one week after fining two banks for selling risky funds to unwitting customers.

So-called alt funds — which contain more unusual investments and employ more complex trading strategies than traditional mutual funds — pose a host of risks, and many investors may be better suited putting their money elsewhere, the Wall Street regulator said in an investor alert.

"Investors should fully understand the strategies and risks of any alternative mutual...
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