From: KEN KESLER [kkesler@houston.rr.com]
Sent: Thursday, February 06, 2003 9:20 AM
To: rule-comments@sec.gov
Subject: Mutual Fund Regulation (s7-51-02)

Gentlemen:

I understand that you are looking into ways to regulate the industry so 
that investors get more information upon which they can make an informed 
decision.
 
It is my experience  that the majority of investors never read prospectuses 
because they simply do not understand them or they assume they have been 
written by a bunch of lawyers who they do not trust.
 
From my perspective there is one thing that desperately needs to be done. 
That is a crystal clear statement of the fund's objective and the fund 
should be regulated to ensure that they comply with the objectives. Style 
slippage is the scourge of the industry. For example if the fund says it 
will invest in large cap stocks then they must very strictly define what 
they mean by a large cap stock and then regulated for their adherence to 
that objective.
 
The endless and mindnumbing descriptions of risk need to be eliminated 
and replaced by a very stark and accurate description of the simple fact 
that all investments are risky and you could lose all of your money.
 
If the investor cannot handle that risk then they should not be investing 
in the fund.
 
Sincerely
 
Ken Kesler