The pros & cons of alternative mutual funds

Wall Street regulators are looking into alternative mutual funds. According to the Wall Street Journal, the Securities and Exchange Commission is investigating this new kind of investment vehicle that mirrors strategies used by hedge funds: investing in private debt or by shorting stocks. They are targeted for individual investors, giving them access to assets that were once exclusive to wealthy investors. These alternative mutual funds have become extremely popular as investors have poured tens of billions of dollars into them, despite their high fees. Alan Haft joins us to discuss the pros and cons of owning them in your portfolio.