Selling one mutual fund to buy another

1. Can I sell a mutual fund to buy another?
2. Can I move money from one mutual fund to another?
3. Can you sell a mutual fund and buy it back?
4. Is there a penalty for selling mutual funds?

Can I sell a mutual fund to buy another?

A mutual fund exchange occurs when you sell mutual fund assets to purchase mutual fund assets in the same mutual fund family. A mutual fund cross family trade occurs when you sell mutual fund assets in one mutual fund family to purchase mutual fund assets in a different mutual fund family.

Can I move money from one mutual fund to another?

You can switch mutual funds as many times as you want, partially or entirely. It is your decision why you want to make a move, but you should also consider the additional tax and exit fees you would have to pay in return.

Can you sell a mutual fund and buy it back?

Mutual funds don't trade like stocks and ETFs, which can be bought and sold at any time during the trading day. Mutual funds can only be bought and sold after the market closes at the fund's net asset value (NAV).

Is there a penalty for selling mutual funds?

Some mutual funds charge fees if you decide to sell your shares. For instance, you're responsible for a percentage of the total amount of shares you're selling. This is known as a back-end load fee. Often a flat fee, the back-end load tends to decrease over time.