No. of Recommendations: 1
I would not worry about bankruptcy of stocks in your mutual fund per se. Few companies sink into bankruptcy by surprise. Most sink into declining earnings and begin reporting losses before they finally deplete their resources and go bankrupt.

So your fund manager should be investing in solid investment grade stocks with most of your assets. They should be playing risky stocks (like banks and auto companies now) only with limited funds and only if they know what they are doing. So your exposure to this, even if they pick badly, should be limited.

Of course if your funds are invested in a hedge fund, or a "short" fund, or other high risk vehicles, the answer changes. But why would you take such risks with your retirement money?
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