Article Summary

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Article Summary

The Changing Role of the Mutual Fund Industry

The change in the mutual fund industry has been constant over the past sixty years. In the 1940s, the industry was very small in size and catered to a small market, providing limited funds which were mainly balanced funds and diversified equity. However, by 2005, the mutual fund industry had evolved into a multi-trillion dollar industry that offered a wide range of investment strategies and policies and thousands of funds.

Initially, the primary focus of the industry was on stewardship, organizing, operating and managing funds as per the interests of shareholders. In stark ...