Liquidating a fund

More recently, no-load funds have proliferated in the marketplace, charging investors no commission at all on both purchases and sales.

liquidating a fund-14

All funds are required by law to distribute any capital gains they earn to shareholders, and in some situations even a fund that is down in value can make a taxable capital gains distribution to shareholders.

You will receive a Form 1099 at the end of the year from your fund company listing any capital gains distributions.

B shares typically charge a fee on sales that declines depending on the time you have owned the fund.

Sales charges in the first year after purchasing the fund are usually 5 percent, declining to zero after six or more years.

Mutual funds are popular with young couples because they offer diversified portfolios run by professional investors with a minimal initial investment.

Last modified 19-Jul-2015 14:22