Re: [RT] MUTUAL FUNDS: 2% STRF

[Dan Goncharoff <TheGonch@xxxxxxxxxxx>]

If I understand your friend correctly, he thinks a rule intended to
restrict short term trading in mutual funds should allow him to sell
his fund in five days, but I should pay a fee when I readjust my fund
portfolio on a monthly basis.

I don't think you friend understands the problem.

Regards
DanG

Charles Meyer wrote:
<blockquote type="cite"
 cite="">
  
  
  
  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
 size="2" color="navy" face="Arial"><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.  (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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