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Business and Entrepreneurship => Mutual Funds and UITFs => Topic started by: alden_hoksbergen on July 21, 2011, 04:09:47 AM



Title: If I purchase additional shares in a mutual fund, do I have to wait 90 days on the additional investment.?
Post by: alden_hoksbergen on July 21, 2011, 04:09:47 AM
My mutual fund has a 90 day early termination fee.  If I purchased the original shares over a year ago, but purchased additions share only 50 days ago, can I cash out the original shares, plus the additional shares, without having to pay the early termination fee?

Thanks,
When cashing out on etrade, how do you specify which share to sell?  It just ask how much in $ you want to sell, or number of shares.  It doesn't seem to allow me to specify which specific shares I am trying to sell.  Thanks for the reply.


Title: Re: If I purchase additional shares in a mutual fund, do I have to wait 90 days on the additional investment.?
Post by: JoeyV on July 22, 2011, 01:54:28 AM
Early termination fees are done on a "first in first out" (FIFO) basis so you will pay an early termination fee only on the additional shares if you cash it all out.  If you only cash out the shares you originally bought, you will pay no early termination fee.


Title: Re: If I purchase additional shares in a mutual fund, do I have to wait 90 days on the additional investment.?
Post by: A_nobody on July 22, 2011, 08:45:03 AM
If I purchase additional shares in a mutual fund, do I have to wait 90 days on the additional investment?
NO

can I cash out the original shares, plus the additional shares?  YES, funds do not want "short term" investors so they put an early termination fee in.  But if you bought a year ago, you're good

E-Trade, like all broker/dealers carry their clients positions on a net basis and do not carry item for item, therefore when you sell the systems can not and do not recognize a particular purchase..

However many B/D systems will let you put a "memo" (footer) on you trade and you can add "VS. PURCHASE 00/11/2005" (the date you purchased the stock you're selling).   This can be used for tax purposes especially if you are not using FIFO.