Liquidating mutual opi dating a royal jelly
Mutual fund liquidity relates to the ease with which investors can buy or sell their mutual fund investments.
Selling of mutual fund investment implies redeeming from a mutual fund.
In most cases, one can get a sneak pick of a fund’s liquidity by prying into and through the prospectus.
Analysts at Quantitative Financial Analytics recently combed through almost all the prospectuses of mutual funds in Nigeria to find out how liquid Nigerian mutual funds are.
As a former compliance officer in a brokerage firm I am familiar with the events that your are talking about and have dealt with similar issues repeatedly in the past.
Re: Liquidating Mutual Funds The Investment Company has a fiduciary duty to "carry out a customers orders promptly in a manner best suited to serve the customers interests".
Re: Liquidating Mutual Funds Simply put, you can file an arbitration claim against the firm for failure to follow customer instructions, possibly including unauthorized trading and then you can claim the losses incurred as damages.
The implication of this is that most mutual funds become illiquid in the first 90 days following subscription to the fund.Recently, I received an inquiry email from one of my readers which reads thus: “What are the best and trusted foreign currency denominated mutual funds that offer good returns with low minimum withholding period, i.e. ” There are two answers to the question: one is on the “best and trusted Euro dollar fund” and another on “low minimum withholding period”.I have decided to talk about the second part of that question first, because I believe that investors are concerned about the “withholding period” of their funds.It was also discovered that redemptions that occur earlier than the stipulated minimum redemption period of 90 days or so, will attract penalties ranging from 0.5% to 2% of the amount being redeemed, or the amount of interest/dividend accrued on the investment, in the case of money market funds.
This means that if you bought into a mutual fund on say, March 1st at N50,000, and by May 1st, the fund had increased to N60,000 and you decide to redeem all your investment, since you have just stayed in the fund for 2 months, you will be required to pay 2% of N60,000 as redemption penalty. The imposition of redemption penalty reduces the liquidity of funds in the early stages of initial investment.Re: Liquidating Mutual Funds You have the following options: you can hire counsel to either negotiate a settlement or you can file an arbitration claim.