The SEC has adopted a new rule that will require mutual funds to hold at least 80 percent of their assets in securities that are consistent with their names, said SEC Chairman Arthur Levitt, speaking last week to investors attending an SEC town hall meeting in Philadelphia.

"Now it's your right to have fund names that accurately reflect their holdings, and to receive a prospectus from the mutual fund you are considering buying," Levitt said. "But it's your obligation to review that prospectus before you invest, and to look at the specific types of companies the fund manager is buying."

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