Redemption of Mutual Fund Shares

What this video covers

• The 7-calendar-day statutory maximum for redemption proceeds, and why calendar days beat business days on the exam
• Forward pricing applied to redemptions: next-computed net asset value (NAV) after the fund receives the order
• The four systematic withdrawal plan types: fixed-dollar, fixed-percentage, fixed-shares, and fixed-time, and which one erodes fastest in a down market
• Why fixed-dollar plans deplete accounts faster when share prices fall, since more shares must be redeemed to maintain the same dollar payout
• Fund family conversions at NAV with no new sales charge, and why they are still taxable events with a reset cost basis
• Contingent deferred sales charge (CDSC) schedules on Class B shares, the annual decline pattern, and automatic conversion to Class A shares after the CDSC period expires
• Why closed-end fund shareholders exit via secondary market sales, not redemption, and how interval funds use tender offers or repurchase windows instead of daily redemption