Subject: File No. S7-06-04
From: steven p mickley, m.d.

March 17, 2004

-i believe that i am relatively knowledgable about mutual funds and investments, but feel that the sec has to protect the individual mutual fund investor, particularly the less knowledgable who typically grossly underperform the inexpensive index funds. it is ridiculous that mutual funds can raise management fees percentages while total asset funds under management increase, and 12-b1 fees are largely kickbacks that induce financial planners to put the unknowing client into the wrong funds and get paid for doing it. as an example of the ridiculous, how can you justify a 12-b1 fee on a fund that is closed?
mutual funds were supposed to protect the small investor, but clearly there needs to be more protection from the sec. I agree with the stance just taken by Fidelity to pursue full disclosure of actual mutual fund costs, including transaction costs. then the small investor can really make a more informed decision about which funds are really appropriate for him/her.