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Article: Two trillion and counting. (rapid growth of bank mutual funds makes it imperative customers understand the risks involved)
- Article from:
- ABA Banking Journal
- Article date:
- February 1, 1994
- Author:
CopyrightCOPYRIGHT 1994 Simmons-Boardman Publishing Corporation. 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)
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Most of what can be said about the rapid growth of mutual funds has been said. Total assets of all mutual funds have passed the $2 trillion mark and, barring a turnaround on Wall Street, could match or even exceed total commercial bank deposits by the end of 1994.
Banks are playing a part in this remarkable market phenomenon. Some 3,500 banks sell mutual funds, and it's been estimated that 15-20% of sales today are handled through banks.
The growing involvement of banks in this market shouldn't surprise anyone. Low interest rates are driving bank customers to seek higher returns than those offered by CDs, and it's logical that banks would offer these ...