It is sad that these kinds of question are surfacing. The problem (of fund defaults) may come from the numerous layers of management that publicly traded mutual fund families face along with performance expectations by the shareholders of those companies.

Funds fail because of a lack of value perception. Fees don’t seem nearly as high when the fund is performing at its peak. But once those returns are jeopardized, even if, as in the current market it was not your fund manager’s fault, those fees look some much more ominous. And couple that sudden realization with a long market downturn and redemptions skyrocket. After that, the weak (and too expensive) funds fall like dominoes.

Secondly, in the future, take the time to explore diversity in your investing, the cost of fees and now, how well the fund manager navigated these brutal times.