Luhar
Dryer sheet wannabe
I am fairly new to mutual fund investing (Roth IRA). Although I have done extensive research on many aspects of mutual funds I have a question I cannot seem to find an answer to. Many funds charge a redemption fee if the shares are sold within a certain time frame (we'll say 30 days for arguments sake). Here's a hypothetical situation to frame my question: I purchase one share in fund "X" today and then purchase another share of this fund a week later. Two weeks after I purchase the second share I sell my entire stake in the fund (31 days after I purchased the first share, but 14 days after I purchased the second share). Will I be charged the early redemption fee on the total value of my investment (i.e. both shares)? Or will I only be charged a redemption fee on the second share that I purchased since I sold within 30 days of purchase?
Just to be clear, I understand the redemption fee will also be charged on any accrued earnings and that mutual funds are not meant to be bought and sold in short time frames. It's just a nagging question that I would like to answer.
Thanks!
Just to be clear, I understand the redemption fee will also be charged on any accrued earnings and that mutual funds are not meant to be bought and sold in short time frames. It's just a nagging question that I would like to answer.
Thanks!