Mutual Funds: An easier way to compare funds

July 4, 2008

A new rule proposed by the Securities and Exchange Commission would speed up the time it takes to compare funds.

A new rule proposed by the Securities and Exchange Commission would speed up the time it takes to compare funds. This would be accomplished by giving investors instant access to interactive data about mutual funds' fees, performance, risks, and other key information. Specifically, the SEC would require fund companies to label data in their public filings using "computer tags" similar to bar codes, beginning with filings effective after December 31, 2009. The data would allow comparison shopping across thousands of funds. "Investors will no longer need to wade through lengthy documents to . . . compare funds one at a time," says SEC Chairman Christopher Cox. The federal agency is soliciting comments until August 1.