As the debate whether mutual funds should charge performance-based fees continues, Don Cassidy, a senior research analyst at Lipper, New York, says the main reason such fees have not caught on is that more funds underperform than overperform benchmark indexes.

In his weekly radio address, Cassidy indicated last week that only 3% of funds with about 8% of total mutual fund assets, charge contingent fees, which are fees that are linked to a performance index.

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