| BUSINESSWEEK ONLINE : SEPTEMBER 6, 1999 ISSUE | ||||||||
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| FINANCE
Fighting Frequent Switchers To discourage short-term trading in their mutual funds, more and more fund management companies are instituting redemption fees. OAKMARK Charges a 2% redemption fee on shares sold within 90 days of purchase. Applies to all funds except Oakmark and Oakmark Equity & Income Funds. INVESCO Levies redemption fees on four international and one high-yield funds. The rate is 1% for shares sold in less than 90 days. BRIDGEWAY Small fund group reserves the right to levy a 2% redemption charge on its index funds if the Standard & Poor's 500 is down more than 5% in five days. AIM Starting Sept. 15, investors are limited to 10 switches per calendar year. FIRSTHAND Two new funds will have 2% exit fees on shares sold within 180 days. CHARLES SCHWAB Doubled from 90 to 180 days the time that retail customers in OneSource funds must hold an investment or pay a redemption fee. Institutional customers' holding period was extended from 60 to 90 days. FIDELITY BROKERAGE Shareholders who sell a no-transaction-fee fund within 180 days now pay a redemption fee. Previously, shareholders could make five trades a year without penalty or minimum holding period. DATA: BUSINESS WEEK _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ BACK TO TOP |
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RELATED ITEMS Mutual Funds: Fast-Buck Traders Get the Heave-Ho TABLE: Fighting Frequent Switchers INTERACT E-Mail to Business Week Online | |||
