A typical fund portfolio includes between 30 and 300 different stocks, bonds, and other instruments. Not all banks and credit unions sell investment products, but many do. Some simply rent lobby space to outside companies. Others sell what are called proprietary funds , which are sponsored by an outside company but receive investment advice from the institution itself. Private label funds , meanwhile, are sponsored and managed through an outside company but sold exclusively through one bank or credit union.
Some mutual funds have names that sound very much like the names of financial institutions.
But in no case are mutual funds insured by either your institution or the U.S. government. As an investor, you should be aware that all mutual funds can fluctuate in value and so carry various degrees of risk, including loss of principal. Mutual funds involve an investment risk, including the possibility of lost principal. Banks that sell mutual funds must distinguish clearly between regular teller windows and mutual fund sales windows. Employees who accept regular deposits are not allowed to offer investment advice.