The Quant Funds group of Lincoln, Mass. has lowered the minimum initial investment to open an account in any of its six mutual funds, provided the account is opened online at the funds website. The minimum initial online investment was reduced to $500 from $2,500 beginning June 1. The reduction will continue until January 1, 2001.
"By lowering the minimum investment for online purchases, we are trying to make investing into any of our funds as easy as possible for our potential investors," said Fred Marius in a statement. Marius is president of the Quantitative Advisors, the funds' adviser. The Quant Funds group has $230 million under management.
The Quant Funds attracted attention last month when it became the second mutual fund group to allow investors to open accounts online. INVESCO Funds of Denver, late last year, was the first to do so.
Also effective June 1, the adviser added a one percent exit fee to the Quant Mid Cap Fund on redemptions made within 60 days of purchase. The redemption fee was imposed to deter market timers, said Heather Dondis, spokesperson for the fund group. The other five Quant funds already charge a one percent redemption fee.