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Money Buzz 10/04

The state of family funds, Check 21 and more

This story appears in the October 2004 issue of Entrepreneur. Subscribe »

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 sales 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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