3 Replies to “What is the process follow a indiviual who want to sell or buy units in their Mutual Funds ?”

  1. The first thing you need to understand is that mutual funds are not synonymous with stocks. So, a decline in the stock market does not necessarily mean that it is time to sell the fund. Stocks are single entities with rates of return associated with what the market will bear. Stocks are driven by the “buy low, sell high” rationale, which explains why, in a falling stock market, many investors panic and quickly dump all of their stock-oriented assets.

    When Selling Your Fund
    When you are cashing-in your mutual fund units, there are a couple of factors to consider that may affect your return:
    Back-end loads – If you are an investor who holds a fund that charges a back-end load, the total you receive when redeeming your units will be affected. Front-end loads, on the other hand, are sales fees charged when you first invest your money into the fund. So, if you had a front-end sales charge of 2%, your initial investment would have been reduced by 2%. If your fund has a back-end load, charges will be deducted from your total redemption value. For many funds, back-end loads tend to be higher when you liquidate your units earlier rather than later, so you need to determine if liquidating your units now is optimal.
    Tax consequences – If your mutual fund has realized significant capital gains in the past, you may be subject to capital gains taxes if the fund is held within a taxable account. When you redeem units of a fund that has a value greater than the total cost, you will have a taxable gain.

  2. Go to the office of the concerned Mutual Fund. Or go to a bank(banks also work as their agents). You can also approach an agent of Mutual Fund. Fill in application and follow other formalities.

  3. Hi Ashok, you can contact the respective companies whose mutual funds you have. They usually have an option to buy & sell mutual funds online on their websites. Alternatively, you can even approach a reputed stock broker who will handle your entire mutual funds portfolio and trade them appropriately to maximize your profits.

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