Vanguard Group has changed the redemption fee policy for its five tax-managed mutual funds, imposing a 1% fee for shares held less than five years.

Previously, the funds imposed a fee of 2% on shares held less than one year, and 1% on shares held one year to less than five years. The fees, paid directly to the funds, are designed to discourage short-term investing.

The fee applies to all share classes of Vanguard Tax-Managed Balanced (VTMFX), Vanguard Tax-Managed Growth & Income (VTGIX), Vanguard Tax-Managed Capital Appreciation (VMCAX), Vanguard Tax-Managed Small-Cap (VTMSX) and Vanguard Tax-Managed International (VTMGX).

Vanguard also cautioned investors about jumping into energy stocks, which it noted have been “pumped to new highs.” In a message to people considering energy funds posted on its Web site, the company pointed out that although energy stocks have had a tremendous run, “investing in a ‘hot’ sector of the market is usually a no-win game.”

The company also said that investors with diversified, broadly-based portfolios may already have sufficient holdings in the energy sector.

Contact Bob Keane with questions or comments at: bkeane@investmentadvisor.com.