Charles Schwab is extending the holding period required for investors to avoid fees in its Mutual Fund OneSource program.

Currently, investors who shop for funds at Schwab's fund supermarket do so without incurring fees unless they hold funds for less than 90 days. But beginning November 23, investors will have to hold funds 180 days to avoid fees. Investors who withdraw earlier will face Schwab's 0.75 percent exit charge. That fee will gradually increase further beginning on February 20, 1999. Investors are charged the regardless of where the proceeds from a redemption are reinvested. Even investors who place their money in Schwab's money market funds or into other Scwab or supermarket funds, pay the fee.

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