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Article: 529 plans seen benefiting from expected fee cuts; Sales could get boost if fund firms lower upfront sales charges.
- Article from:
- Investment News
- Article date:
- June 1, 2009
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Byline: Charles Paikert
The expected reduction in front-end sales charges by large mutual fund companies may help stimulate sagging sales for Section 529 college savings plans.
"If they change the pricing for existing mutual funds, it would directly translate to their 529 share classes,'' said Joe Hurley, president and chief executive of Savingforcollege.com LLC of Pittsford, N.Y.
Lowering upfront loads that can run as high as 5% should result in increased sales, according to industry analysts.
"I would expect a reduction in upfront sales charges to boost sales. It could help advisers reach all ranges of the middle class instead of ...