The creditors will see any money before the investors if the fund, that faces losses of more than 80 per cent, is placed in liquidation after the Sydney fund collapsed after the pressures of the US sub-prime crisis.
Liquidator Grant Thornton will assess the assets and creditors of the fund and then a decision will be made to decide if the fund will go into liquidation.
AMP Capital Investors' chief economist Shane Oliver told The Age there would be effects of Basis Capital applying for bankruptcy protection.
He said: "Anyone who had been following the story over the last couple of months would know that they'd already collapsed."
The fund had invested in collateralised debt obligations (CDOs) which aim to spread the risk, however commentators describe the process as being like putting horse dung and rubbish into a grinder to make sausage, said The Age.
The fund has filed for bankruptcy protection with a US court.