Fund groups, anxious to lure bulky retirement assets including IRA rollovers into their funds, are creating or altering special no-load share classes for just that purpose.
Putnam Investments is the latest fund group to spearhead such an initiative. On June 1, Putnam altered the rules for its existing M class of shares, making it more IRA rollover friendly. Putnam removed the existing front-end sales charge for any IRA rollover that is invested in any of the group's funds. The waiver applies only to assets previously invested in a Putnam fund under a qualified retirement plan.