Having a widely diversified investment portfolio is important, and it is important to liquidate mutual fund shares to keep your portfolio in balance. When the stock market is riding high, the stock portion of your portfolio may get out of balance, and converting some of those stock mutual fund holdings to cash is one of the best ways to restore the proper ratio of stocks to fixed income investments.
Things You'll Need
- Mutual fund statement
- Bank account or cash account
Find the most recent mutual fund statement. Keep in mind that the current value of your fund may be more or less than what is shown on the statement. You can find the current value of the fund online if you have established online access for your account.
Log on to the mutual fund site if you have created an online account. Otherwise call the toll-free number listed on your mutual fund statement.
Go to the trading menu on the site, or tell the phone representative you wish to sell your shares. Enter the number of shares or the dollar amount you wish to sell.
Confirm the sale of the fund and indicate how you wish to receive the proceeds. If you have a linked bank account you can transfer the money from the mutual fund directly to the account. Otherwise you can choose to hold the funds in a cash account at the mutual fund company. You can also request a check from the company, but be aware there may be a charge for a paper check.
Keep a copy of the trade confirmation you receive for your records. Check with the mutual fund family to determine your cost basis--you will be responsible for paying taxes on any capital gains, unless your mutual funds were held in a tax-deferred account.