Beginning in 2005, many mutual fund companies began implementing restrictions on trading. Although not fans of moving money in and out of their portfolios, most fund managers were of the kind to ‘grin and bear it’ so these fund families allowed trading between their funds at no commission and no fees. In 2003, Elliot Spitzer, the then attorney general of New York began a deep investigation into the mutual fund industry. Specifically, the allegations - which were eventually verified - that many mutual fund companies were allowing their very large clients, such as pension funds and money managers with billions under management, to trade after market hours (9:30am-4pm). Of course, not only did this give an unfair advantage to these companies but it was totally against regulatory policy. Today, many mutual fund companies limit the number of transactions their shareholders can initiate, however every fund family is different.

In order to apply the advantage that GaneWisdom/Market Edge offers by it’s analysis, it is important to know the trading practices allowed in your particular account. There could be a certain limit – say 10 to 15 transfers per year – or there may be no limitation, again, depending on the fund group. Since frequent movements between funds are not usually necessary and are rare (allowing for the possibility that they may be announced) utilizing the analysis we offer should be complimentary to your individual money management.
The procedure to initiate movements and transfers between your subaccounts is very simple and can be done either by phone or online. If you have not yet set up an online account with your particular plan and you decide to subscribe to our service, now would be the time to do so. Each time a transfer is completed, a statement from your plan will be issued to you for your records.