Funds' Online Transaction Capabilities Rated Highly

Mutual fund companies have largely developed robust online transaction capabilities, according to a new, 116-page  report from Corporate Insight. Called “Transaction Interfaces: Money Management at Your Fingertips,” the report is based on Corporate Insight’s analysis of 18 websites. The company also rated each website for transaction accessibility, options, help resources and policy explanations.

“We reviewed the online transaction capabilities available to investors at the 18 mutual fund firms we track and were impressed with what we saw,” said Chris McNeil, senior analyst at Corporate Insight.

Of the 18, only one firm offered no transaction capabilities, while a second didn’t allow investors to sell shares online. The remaining 16 companies all allow investors to buy, sell and exchange shares online. Eleven enable investors to open a new fund account online.

Even companies that sell their funds through wholesalers rather than directly to investors have robust online transaction capabilities, Corporate Insight found.