How to Sell All Shares of a Mutual Fund
With the advent of online trading and the growth of 24-hour financial news, many investors are comfortable with doing securities trades, either on their own or through the use of a full-service broker. However, transactions in mutual funds can prove more complicated than stock trades, as funds can trade in fractional shares and often have reinvested dividends, resulting in additional shares in the account.
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Instructions
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Assemble all investment account statements. To make sure you sell all of your shares of a mutual fund, you must start by locating all shares that you own. Your bank or brokerage account statement is the first place to start. This statement should list all of your holdings and all of your shares in the mutual fund you want to sell. Make sure that any reinvested dividends are listed on your statement as well. When you are ready to sell, check online or call your financial representative to make sure that no additional shares have been deposited into your account, such as those from reinvested dividends.
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Call the mutual fund company directly. Even if you think you hold all of your shares with your bank or brokerage firm, ask the mutual fund company if it holds any shares for your benefit at the firm itself. While not as common as in years past, occasionally stock splits or special dividends result in additional fund shares being issued, and sometimes the fund company holds these shares for the benefit of individual investors.
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Sell your shares. Contact your financial representative or enter your own order online, if your firm allows it. Make sure the number of shares listed in your account matches your own records. Do not forget to include fractional shares. If you discovered additional shares held by your mutual fund company, call its customer service number and ask if it can liquidate all of your shares for you. If it can't, have the company mail your shares to your brokerage account and sell them there.
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Follow up on your sale. Verify that all of your shares have been liquidated in your account. Check back often to make sure that no additional shares have been deposited, perhaps from a dividend that was not yet in your account at the time of your sale. Keep records of your transaction so you can report it on your tax return.
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