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Business Services Industry

Waive goodbye

Entrepreneur, Oct, 2004 by Jennifer Pellet

WAIVE GOODBYE: Invesco, Janus, Merrill Lynch, Putnam Investments--the list of mutual fund families under fire for questionable practices is swelling. Still, investors who paid front-end safes loads may be reluctant to switch fund families, fearing another round of upfront fees and capital gains taxes.

Before you take it on the chin, says John Gannon, vice president of investor education at the National Association of Securities Dealers, check the fine print of your fund prospectus." Some funds allow a net asset value (NAV) transfer, which enables investors who paid a front- or back-end load to purchase a new fund without having to pay the upfront sales charge," he says.

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Information about NAY transfers can usually be found in a fund's prospectus or statement of additional information, in the "sales-charge reductions and waivers" section. "Carefully read the prospectus, or talk to your broker," advises Gannon. Investors making NAV transfers typically must purchase the new fund within 30 to 90 days of the sate of the original fund.

If the fund doesn't offer NAV transfers, are you out of luck? Not necessarily. "Almost an funds have ways to waive front- or backend sales charges, some of which are extremely esoteric," says Gannon. Read the prospectus to see if any waivers apply to you.

Businesses that received VC fubding between 1970 and 2003 generated 101.1 MILLION jobs and $1.8 TRILLION in revenue last year.

JENNIFER PELLET (jpellet5@aol.com) s a freelance writer in New York City specializing in business and finance.

Business Services Industry

Waive goodbye

Entrepreneur, Oct, 2004 by Jennifer Pellet

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