FINRA has issued a new INVESTOR ALERT!

Coleman Law Firm

Most of us are at least somewhat familiar with mutual fund terms like:

  • Small Cap Funds
  • Large Cap Funds
  • Index Funds
  • Bond Funds

Most mutual funds contain the name of the investment company that is managing the fund (Franklin Templeton, Fidelity, Vanguard, for example only and NOT recommendation) with a description of the fund’s investment focus.

Mutual funds are usually recommended to help diversify a portfolio and you and your registered financial advisor should discuss and decide between yourselves which types (if any) of mutual funds are best for your particular situation.

FINRA is concerned because Frontier Funds that invest in securities of companies with developing securities markets like Argentina, Lebanon, Nigeria, Slovenia, and Vietnam are gaining investor attention.  According to the alert, Some see investing in frontier funds as a way to diversify assets going beyond funds that invest in ESTABLISHED international and other more developed emerging markets.  Frontier Funds are also sparking the interest of some investors who are lured predominately by potential gains.

FINRA has issued this alert to caution those interested in funds that invest in frontier markets to carefully consider the HEIGHTENED RISKS in these markets.   Frontier fund investments may provide potential diversification and periods of higher returns than can be obtained through more traditional investments.  But products or asset niches that promise higher returns nearly ALWAYS CARRY MORE RISK and the past performance of ANY fund is never a guarantee of future results.

If you are considering investing in Frontier Funds, be sure to read the prospectus carefully (as you should before making any investment).  Most Frontier Funds are designated for AGGRESSIVE GROWTH and described as high risk.

If you are considering, or have been pitched the idea of purchasing Frontier Funds, please read the entire Investor Alert located on the website.

For even more information about all kinds of mutual funds in general, you can always check out the Securities and Exchange publication on this subjection.  Here is the link. Or please contact a Clearwater securities litigation attorney by calling 727-461-7474.


Client Success Stories

Search Coleman Law Firm