These funds, although risky on the surface, can help reduce risks and increase diversification of portfolio using smaller amount of investment in each specific fund. Individuals alone or individuals with their advisors should be able to determine their risk tolerance and therefore type of investments. A risk seeking individual can lose same amount of money by investing in futures, cryptocurrencies, and other high risk investments. Employers limit the risk of investments in 401k or 403b. However, other individual accounts should be managed and directed by investors and/or their advisors without interference by regulators.
George Ferzli Comment On Regulatory Notice 22-08
These funds, although risky on the surface, can help reduce risks and increase diversification of portfolio using smaller amount of investment in each specific fund. Individuals alone or individuals with their advisors should be able to determine their risk tolerance and therefore type of investments. A risk seeking individual can lose same amount of money by investing in futures, cryptocurrencies, and other high risk investments. Employers limit the risk of investments in 401k or 403b. However, other individual accounts should be managed and directed by investors and/or their advisors without interference by regulators.