Charles Schwab , one of the first online traders. Today most major funds either have interactive Internet sites for customers or are scrambling to create them to keep up with investors' growing appetite for managing finances in cyberspace. Conn. He pointed out that the current issue of SmartMoney magazine includes for the first time, in its yearly rating of top mutual funds, a category evaluating the convenience and comprehensiveness of each fund's online services. The explosion in online services has the potential to provide consumers with more information about funds and with more control over their accounts. Fidelity Investments of Boston, the largest mutual fund family, has been a leader in providing online services, according to fund analysts.
Customers can go online to sell shares in a fund or to reapportion their money among funds.
Completing transactions online provides investors with convenience and more control over their money, but it also puts more responsibility on their shoulders, said Lepeak. Online transactions do have limitations, though. An investor can't open an account online. R.I. And customers cannot open an account with a charge card because federal regulations bar consumers from opening new accounts on credit, he said. In addition, funds must have a customer's signature on file to open an account.