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(1/23/00)
Although there are several S & P 500 Index mutual funds offered by popular fund families such as Vanguard and Dreyfus, many require initial minimum investments of $2,500 and above. If you're looking for a S & P Index fund with a low minimum investment, try Munder Index 500. The Munder Index 500 fund's initial investment is only $250 and any subsequent purchase can be as low as $50. This five star mutual fund (highly rated by Morningstar) sports an average risk profile with an above average return.
Another great feature available through this fund family is the Automatic Investment Plan or AIP. Through the AIP, you can set up monthly investments into the Munder Index 500 by arranging automatic deductions directly from your checking or savings account. What a fantastic way to keep your investment portfolio growing.
The Munder Index fund has two different classes – Class A and Class B. The main difference is the way the sales fees are charged. The Class A shares assesses a 2.5% sales load up front and no subsequent charges for selling. On the other hand, the Class B shares have no up front sales load, but charge selling fees based on a graduated scale. (for more details click here to go to Munder web site) However, after holding the Class B fund for six years there is NO sales charge. So even though the return on the Class B shares are slightly lower, if you plan to hold the fund for more than six years (core investments should be held for the long term), investing in the Class B shares will generate higher returns in the long run.
Munder Index 500 - Class B
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Symbol
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MUXBX
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Phone Number
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(800) 438-5789
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Web Site
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www.munder.com
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Minimum Investment
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$250
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Load
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None
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Expense Ratio
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0.74%
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Redemption Fee (if you sell within 12 months)
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5%
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Year to date return (as of 12/31/99)
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19.96%
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(Source: www.munder.com – accuracy of this information is not guaranteed)
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