Track to thefuture

In the wake of the credit crunch, cautious investors are relying on the tracker fund for security, but are they as safe as they are supposed to be?

Tracker funds have long had the reputation of being dull, yet relatively safe vehicles from an investment risk standpoint. However, these are hardly normal times we are living in, given investment performance is all too often being put to the international banking system sword. As the global credit crunch grinds on, optimists point to the recent US Fed-inspired rescue of Bear Stearns as tentative evidence that perhaps bankers are now becoming more engaged in addressing the underlying problems. For investors, though - especially those holding FTSE 100 index tracker funds - the last few m...