March 19, 2004
Imposing a 2 fee for mutual fund transactions under 5 days would further limit the survival of the small investor. One is loosing by being locked into bad investments and not by getting out quickly.
If one wanted to get out of an investment there should not be a penalty for it.
Even if there was a fee the 2 fee is laugheably excessive.
At several online brokers one can liquidate a 75.000 investment let say 7500 shares of IBM for 1 or less.
The proposed rule would make the investor pay the fund company who is as electronically advanced as the discount brokers 1500 TIMES that much?
Gentlemen, please do not let yourselves be swayed by the smooth talking lawyers of the MF industry.
Sincerely,
Joseph Szoecs