'Commingled Pools' vs. 'Mutual' Funds

Many financial planners, and those helping administer retirement plans for clients and companies, may want to take a refresher course on the differences between 'commingled pools' and 'mutual' funds.

Mutual funds, of course, are very popular staples of 401(k) plans and other savings instruments, and although these funds and commingled pools are both run by investment managers, funds that are 'commingled' are not open to individual investors are not regulated by the Securites and Exchange Commission.

Most commingled pools are run by banks and trusts, and do not have the disclosure requirements more commonly associated with mutual funds. For this reason, they are becoming popular with investors because there is less pressure to make daily reports.

In addition, funds in commingled pools may cost less than the same stocks accumulated in mutual funds. This can be seen in the net investment return.

You may like these other stories...

Read more from Larry Perry here and in the Today's World of Audits archive.Accounting PrinciplesAccounts Payable and Accrued Expenses: The AICPA's Financial Reporting Framework for Small- and Medium-Sized Entities is...
BKD LLP adds Illinois accounting firm Wolf & Co.Springfield, Missouri-based CPA and advisory firm BKD LLP and Chicago-based accounting firm Wolf & Co. have agreed to merge, the firms announced on Monday. Wolf will...
Ernst & Young fiscal-year revenue rises 6% to $27.4 billionMichael Rapoport of the Wall Street Journal reported late Thursday that Ernst & Young's (EY) global revenue was $27.4 billion in its latest fiscal year,...

Already a member? log in here.

Upcoming CPE Webinars

Oct 9In this jam-packed presentation Excel expert David Ringstrom, CPA will give you a crash-course in creating spreadsheet-based dashboards.
Oct 15This webinar presents the requirements of AU-C 600, Audits of Group Financial Statements (Including the Work of Component Auditors).
Oct 21Kristen Rampe will share how to speak and write more effectively by understanding your own and your audience’s communication style.
Oct 23Amber Setter will show the value of leadership assessments as tools for individual and organizational leadership development initiatives.