selling index mutual funds
When you decide to cash out, you’ll have to sell your index mutual funds back to the bank.
- You'll be selling at the end-of-day price so you won't know it in advance – but you should check the previous day’s price on the fund’s website to get an estimate.
- You must hold the fund for 30 days before selling it/switching to another fund to avoid extra fees (usually 2% of your fund's value).
Check with your bank before you sell. Check online or call the bank and find out:
- How to place a sale order.
- How soon will the proceeds (money) be available.
- How will you receive them?
- Is there a minimum balance requirement for your account and what happens if you fall below it (fees / penalties)?
After you place the order,check your account online the next day to make sure the transaction has gone through as expected and your money is in the account.