US funds may charge for withdrawals amid turmoil
The measure being considered by the SEC could help funds cope with shocks such as a central bank's move to hike interest rates
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Washington
MUTUAL funds may be able to charge their investors who rush to cash out during periods of market stress under a rule being considered by the US Securities and Exchange Commission (SEC).
Officials at the regulator think the change could curb the impulse to stampede out of mutual funds when asset prices are at risk of tanking, according to two persons familiar with the matter who asked to not be named. The measure, which is part of a broader rule proposal scheduled for a Sept 22 vote, could help funds cope with shocks such as a central bank's move to hike interest rates that could prompt widespread investor withdrawals.
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