Mutual funds and no-load fees... (simple question)

[meleader2]

...but penalties if you sell early. i'm currently a holder of JARFX and will be penalized if i sell before 3months time. however, is it worth it if i believe the market to become bearish?

[ QUOTE ]
Sales charges........................................... .... None
Redemption fee on shares of the Fund held for three months
or less (as a % of amount redeemed). Effective for shares
purchased on or after May 15, 2007, the period during which
a redemption fee may apply will change from three months to
90 days.............................................. ...... 2.00%(2)(3)
Exchange fee............................................... . None(3)

[/ QUOTE ]

from the prospectus ^

also, does this mean that if i sell ALL of my holdings this will happen, or can i avoid this by only selling 90% of the mutual fund while holding 10%?

i'm assuming the above doesn't hold true, but i am hoping.

[SleeperHE]

Redemption fee on shares of the Fund held for three months
or less (as a % of amount redeemed)


Selling 90% of the holding would not avoid the redemption fee as the fee is based on the amount redeemed.

Also usually the purpose of buying a mutual fund isn't necessarily to make tactical decisions; ie making short term timing plays... but if you see a long correction coming where the price of the fund moves substantially more than the 2% fee. Then selling could be justified.

[meleader2]

[ QUOTE ]
Redemption fee on shares of the Fund held for three months
or less (as a % of amount redeemed)


Selling 90% of the holding would not avoid the redemption fee as the fee is based on the amount redeemed.

Also usually the purpose of buying a mutual fund isn't necessarily to make tactical decisions; ie making short term timing plays... but if you see a long correction coming where the price of the fund moves substantially more than the 2% fee. Then selling could be justified.

[/ QUOTE ]


good point. thanks.