How to Get Out of a Mutual Fund

A mutual fund consists of a collection of stocks, bonds or other types of investments that people can purchase shares in. Similar to how you trade a stock, you can buy or sell shares you own in a mutual fund. To get out completely, you simply sell all of your shares. If you really want to be a sell-out, proceed with caution. There are several considerations, particularly tax implications and how to handle the proceeds of the sale, to take into account.

Step 1

Contact the firm you have your mutual fund account with. You can find their contact information on the statements they send you via email or snail mail. Alternatively, you can log in to your account with your user name and password if you have online access.

Step 2

Place an order to sell the shares you own in the mutual fund you wish to get out of. The type of account you have dictates the number of options you have to unload shares. Most firms provide online access. In this case, you can view your account online and place a trade to sell all of the shares you own in the fund. Some firms allow you to call in or use an automated telephone system to request an order to sell mutual fund shares. In either case, you'll indicate the number of shares to sell or simply select "all shares" and the firm will complete the transaction when the stock market closes that day or the next day if you placed the request after market hours.

Step 3

Decide what to do with the proceeds of your sale. If you conduct the transaction in a brokerage account, you can let the money sit as cash, reinvest it or have your brokerage send you a check or electronically transfer the money to your linked checking or savings account. If you are selling the fund directly through the mutual fund company, they will require that you reinvest the money with them in one of their funds or another security or take the cash using one of the two above-mentioned methods.

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