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A friend of mine posted this eloquent statement to
the SEC website.
Chas
====
<SPAN
>Your proposed
regulation of a 2 percent short term redemption fee for purchased mutual funds
held less than 5 days is a perfect way for you to punish individual investors
while enriching the crooked fund companies that have allowed excessive trading
for a few which is prohibited by their prospectuses.
<SPAN
>
<SPAN
>While I rarely sell
newly purchased funds within 5 days, I do have a stop loss discipline that
causes me to exit a position if the market should go strongly against my entry
point. The fact that you would seek to penalize me when this situation
does occur adds to losses I will sustain. The idea that I should somehow
be forced to hold a position in the face of a plunging market is truely
offensive to me. Dont you understand that it is important to manage risk
in ones portfolio?
<SPAN
>
<SPAN
>Some funds have a rule
that says investors are allowed only four buy/sell transactions in a fund per
year. I find a rule such as this entirely reasonable. It addresses
the problem of excessive trading while neither punishing the individual investor
for selling when markets decline nor enriching the fund companies at the expense
of the investor. Please consider a more neutral rule such as this.
<SPAN
>
<SPAN
><FONT
face=Arial color=navy size=2><SPAN
>
<DIV
>
<SPAN
>
<SPAN
>Hi-
<SPAN
>
<SPAN
>I read this morning on my DTN screen
that the SEC is taking public comments on this proposal through May
10: 2% short
<SPAN
>term redemption fee on any mutual
fund held < five days. (<A
href="">www.sec.gov)
<SPAN
>
<SPAN
>It would appear that investors
might have until June maybe before they will know what's going to happen on
this issue.
<SPAN
>
<SPAN
>Chas
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