Leading Online Services to Offer Mutual Fund Trading

Mutual fund trading will soon be available on the nation’s biggest computer online services, officials said.

America Online Inc., the nation’s biggest online service, and CompuServe, which ranks second, plan to offer shareholders of participating fund companies an electronic avenue to open new accounts, check balances, redeem shares and transfer money within a fund family.

Vienna, Va.-based America Online announced plans for such a service in late January.

USA Today reported Friday that fund transaction capabilities could begin as early as today.

“It’s on the way,” AOL spokeswoman Tanya Mazarowski said, but she declined to be more specific.

CompuServe spokeswoman Gail B. Whitcomb said the mutual fund transactions service will be available by late spring.

CompuServe announced last week that it would expand its personal financial services, including online banking and brokerage services.

At Prodigy Services Co., another large online provider, spokesman Brian Ek said mutual fund transaction “is an area that looks very attractive to us.”

Vanguard Group Inc., a mutual fund group based in Valley Forge, Pa., plans to allow its shareholders to conduct transactions on America Online. But many Vanguard shareholders expressed worries about electronic access to their accounts, so Vanguard is now building in extra security to block any electronic access at shareholders’ request, said Brian Mattes, a company spokesman.

Some mutual fund companies, including Baltimore-based T. Rowe Price Associates Inc., allow their customers to connect with them directly from a home computer.

None currently allows transactions through a public data network such as the Internet.

AOL and CompuServe subscribers will access their fund accounts through DST Systems Inc., which provides mutual fund transfer and data services.

Subscribers will be given new passwords to conduct the transactions.