PALM DESERT, Calif. - Regulators are increasing their scrutiny of mutual fund advertising in light of fund companies' heavy promotion of their 1999 mutual funds' performances.

In particular, NASD Regulation has increased its scrutiny of how mutual funds depict performance using charts due to an increase in recent months of questionable chart advertisements, said Thomas Selman, vice president of NASDR. That is one of several steps NASDR and the SEC are taking to respond to the proliferation of mutual fund advertisements that promote the unprecedented investment performance that some funds enjoyed in 1999, regulators said. More than 150 funds had returns in excess of 100 percent last year.

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