Fee falling.(mutual funds)

Byline: Ross Kerber

Jul. 2--Interest rates are rising, the stock market is middling, and the dollar's buying clout isn't what it used to be. But here's one piece of good news for investors: Mutual fund fees are falling.

Shareholders paid 3 percent less in 2005 than in 2004 to own mutual funds that invest in stocks, according to a recent report by the Investment Company Institute, an industry trade group. It's been a trend in the industry, and 3 percent may not sound like much, but small differences can add up over the long haul: the trade group calculates that over 10 years, the difference between the average fees paid today and the average fees charged in the 1990s would give an investor an extra $735 per $10,000 invested.

Why are fees coming down? Many analysts say the declines are due in a large part to pressure from regulators such as New York Attorney General Eliot Spitzer, who forced some midsized fund complexes, including MFS and Bank of America's Columbia funds, to lower their fees to settle broader investigations of their practices. In all, nine companies agreed to…