Final answer:
No, losing money in a mutual fund does not make you eligible for coverage by the Mutual Fund Investor Protection Corporation (MFIPC). However, savings accounts are protected by other government agencies such as NCUA and FDIC.
Step-by-step explanation:
No, if you lose money in a mutual fund, you are not covered by the Mutual Fund Investor Protection Corporation (MFIPC). The MFIPC does not provide protection against investment losses. It is important to understand that mutual funds are subject to market risks and the value of your investment can go up or down based on the performance of the fund's assets.
However, it is worth noting that there are government agencies that provide protection for savings accounts. Credit union institutions are protected by the National Credit Union Administration (NCUA) and banks are protected by the Federal Deposit Insurance Corporation (FDIC). These agencies protect savings accounts up to $100,000.
Remember to always do thorough research and consult with a financial advisor when considering investments to fully understand the risks involved.