Fidelity Investments is removing short-term trading fees for 75 funds, the latest move by the mutual-fund firm to adapt to the growing popularity of low cost exchange-traded funds. These so-called redemption fees, which are charged to mutual fund customers who withdraw their money within a given time horizon, are paid back to the fund, which benefits remaining shareholders. In addition to removing these fees from several funds, the Boston money manager is also expanding the number of mutual fund transactions that are exempt...
Boston -based Fidelity has lifted some fees on 75 funds and expanded the number of mutual trading funds exempt from fees, in a move that has been called "unique and fairly aggressive". While the rules forbidding excessive trading remain in place, Fidelity Investments has made the decision to try to counter the growth of exchange-traded funds, which have seen liquidity increasingly move away from traditional funds. "Mutual-fund companies would like to recoup some of that money," said Todd Rosenbluth , director of Fidelity Investments and mutual fund research at CFRA .