The Moneypaper, a newsletter based in Mamaroneck, NY, has started a new no-load mutual fund which is based on the newsletter's 63-stock index of companies that have low or no-cost dividend reinvestment plans. The company announced plans to start the fund in the fall.
The index includes companies like Coca-Cola, Intel, Johnson & Johnson, Paychex, Sara Lee and Tyco International. The index has outperformed the Dow Jones Industrial and S&P Index since its inception in 1994, logging a gain of 175.51% through Dec. 31, 1998.
The new fund, called the MP63 Mutual Fund, aims for zero turnover and full reinvestment. The fund will strive to keep expenses low and will not levy 12b-1 fees.
The minimum initial investment is $1,000.