Commingling (Commingled)

This is a fund that blends the monies of several different accounts into one single fund. The goal is to reduce trading costs on every investment and provide economies of scale to investors. The thing is...if you’re a retail investor, this word really doesn’t matter much, since you don’t have access to commingled funds. But other investors should pay attention.

Commingled funds are not regulated by the SEC and don’t require registration, under the Investment Company Act of 1940. They also don’t have a ticker like mutual funds, which means you have no idea how that fund is performing. If you’re letting someone else manage your money, it’s best to have as much regulated transparency as possible.