Investor Alert

Net Asset Value Transfers: Look Before You Leap Into Another Mutual Fund

Certain load mutual funds allow you to buy Class A shares without paying the front-end sales load if you buy that fund using proceeds from the sale of shares in a different mutual fund family for which you paid a front-end or back-end sales charge. These transactions are called "NAV transfers" because you can purchase Class A shares of a new fund at net asset value (NAV) without paying a front-end sales load. Although NAV transfers currently are only offered by a limited number of funds, they can eliminate the sales charges you'll pay when switching between load funds in different fund families.

Learn how NAV transfers work and what steps you can take to avoid paying any unnecessary sales charges on mutual funds.

Other Investor Alerts on Mutual Funds

NASD has issued a number of Investor Alerts on other important mutual funds issues. These Investor Alerts include:

Mutual Fund Breakpoints: Are You Owed a Refund?

Class B Mutual Fund Shares: Do They Make the Grade?

Principal-Protected Funds - Security Has a Price

Mutual Fund Breakpoints: A Break Worth Taking

Understanding Mutual Fund Classes

Funds of Hedge Funds - Higher Costs And Risks For Higher Potential Returns

Past Issues of Investor News Available

In response to numerous requests, previous issues of Investor News are now available on our Web site.

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News Dispatch

NASD Requires AXA Advisors To Pay Full Restitution to Customers Who Did Not Receive Net Asset Value Transfer Opportunities.

NASD announced today that it has censured and fined AXA Advisors, LLC $250,000 for failing to obtain sales charge waivers for mutual fund customers through net asset value (NAV) transfer programs. AXA also was ordered to provide full restitution to all customers who paid sales charges on purchases that were subject to these programs from February 2000 through February 2004.

NASD also announced that it is initiating a broad-based review to determine whether other firms are meeting their obligations to provide sales charge waivers to their customers.

Read the News Release.

Tools You Can Use

Mutual Fund and Exchange Trade Fund Expense Analyzer

Research has shown that many investors are unaware of how much they pay to own mutual funds and that even small differences in fees can result in thousands of dollars in costs over time that could have been avoided. NASD's Expense Analyzer is an Internet-based tool for investors to enable them to compare the fees and expenses they pay for mutual funds and exchange traded funds, or ETFs.

NASD's Expense Analyzer helps you to:

• Compare two funds or classes of funds at one time



• Tell where the fees of a particular fund fall compared to industry averages



• Check for possible breakpoint discounts.

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