The History of Mutual Funds

The History of Mutual Funds

Modern mutual funds begin in the 1920s

The 1940 Investment Company Act

Modern mutual funds begin in the 1920s

Used leverage extensively

Contributed to market bubble in late 1920s

The 1940 Investment Company Act

Landmark legislation that still governs mutual funds

Increases disclosure and safety for investors

Tilted scales in favor of open-end funds instead of closed-end funds