For one thing, redemption fees will work only if they are universally applied and enforced.

All three are aimed at long-term investors, a focus reinforced by the funds' redemption fees.

Apart from 12b-1 charges, some funds impose redemption fees when investors sell their holdings.

In other words, redemption fees directly benefit a fund's remaining shareholders.

But some proponents of redemption fees are starting to have doubts.

In the past few years, two fund groups that tried redemption fees have dropped them.

It excluded redemption fees, which are charged to investors who sell shares soon after buying them.

When investors are allowed to take money out of the fund, redemption fees and charges will be waived, the letter said.

Could the day traders be stopped if all funds charged a redemption fee on short-term trades?

However, the latter refused to pay the redemption fees.