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Mutual funds: the other big scandal.(CR Investigates)

Consumer Reports

| March 01, 2004 | COPYRIGHT 2004 Consumers Union of the United States, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Remember Janus and Putnam, Strong, and Alliance Capital? With the stock market reaching levels not seen in two years, it's tempting to forget about the mutual-fund scandals that broke a few months ago. Investigations into shady trading practices that conferred black eyes on a dozen fund families are hardly as riveting as watching your own portfolio come back to life.

And outrageous as it is, the mutual-fund mess (See CloseUp on page 13) is relatively small potatoes. The total amount lost to investors is an estimated $5.4 billion, but that's just a smidge to the $7 trillion fund industry. Moreover, most of the funds involved have announced that they will repay ...

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