And timing may result in lots of short-term trades.

"Even if you cover the cost of the short-term trade, you can still have disruptions in the fund."

"If there are frequent short-term trades, perhaps the taxpayer should think of a longer horizon."

He warned, though, that "it may be more of a short-term trade because it depends on next month's economic data."

Now, funds can, if they wish, make short-term trades in options and other securities without worrying about the tax collector.

That's a high hurdle for a short-term trade.

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

Member States must appreciate that longer-term stability is more productive than short-term trade or oil supplies.

No-load funds that charge redemption fees on short-term trades are far preferable.

He added that they should also help normalize Brazil's short-term trade and interbank lines of credit.