What is Fidelity Investments’ frequent trading policy for Select funds, and how does it affect Fidelity Select Fundranker?
As of October 1, 2006, Fidelity Investments instituted a new policy for frequent trading of their Select mutual funds. Fidelity now measures excessive trading activity for Select funds by the number of roundtrip transactions (buying and selling within 30 days) that occur in a shareholder’s account. Shareholders are limited to two roundtrip transactions per fund within any rolling 90-day period and four roundtrip transactions across all Fidelity funds within any rolling 12-month period. So that you don’t have to keep track of how many roundtrip transactions occur in your Fidelity account, Fidelity Select Fundranker will avoid roundtrip transactions altogether. To accomplish this, Fidelity Select Fundranker will set an exchange date only after determining whether any funds held only one month are to be exchanged. If all funds to be sold in the Top Eight Model Portfolio have been held longer than one month, the exchange date will be on the first business day after the first day of the mon
