Relay-Version: version B 2.10 5/3/83; site utzoo.UUCP Posting-Version: version B 2.10 5/26/83; site ihuxm.UUCP Path: utzoo!linus!wivax!decvax!microsoft!uw-beaver!cornell!vax135!floyd!whuxlb!pyuxll!eisx!npoiv!npois!hogpc!houxm!ihnp4!ihuxm!prgclb From: prgclb@ihuxm.UUCP Newsgroups: net.invest Subject: "Low-Load" Mutual Funds Message-ID: <372@ihuxm.UUCP> Date: Wed, 20-Jul-83 16:00:44 EDT Article-I.D.: ihuxm.372 Posted: Wed Jul 20 16:00:44 1983 Date-Received: Fri, 22-Jul-83 03:10:40 EDT Organization: BTL Naperville, Il. Lines: 30 The following news item comes from the Wednesday, July 20 issue of USA Today: ************************************************** Low-loads: A mutual fund trend? Some investors are boiling about the Fidelity Group's decision to impose a 2 percent load (sales charge) on six of its popular Select mutual funds. Burton Berry, publisher of NoLoad Fund X, a San Francisco-based mutual fund newsletter, says his readers are "expressing outrage" at the load. Fidelity, like other big mutual fund companies, has long offered no-load funds to encourage investor purchases. Fidelity's 2 percent load still is less than the normal 5 percent to 8 percent charged by many brokerage house mutual funds, but there's a big difference, Berry notes: The normal load goes to the broker or salesperson who initiates the transaction. Because investors buy Fieldity shares directly from the company, the 2 percent load goes to the fund manager -- a tidy extra profit. Berry worries that other no-load funds will follow Fieldity's example. "If investors don't resist, they stand to lose one of the best deals in the marketplace (no-load funds)," he says. **************************************************** Carl Blesch Bell Labs - Naperville, Ill. IH 2A-159, (312) 979-3360 ihuxm!prgclb