How liquid are Vanguard mutual funds?

Mutual Funds
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May 2017
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All mutual funds are liquid, although they may have different redemption schedules which would require a fee be charged in the case of liquidity needs. 

At the end of each trading day, all mutual fund orders are executed at the fund's net asset value. Vanguard or any other mutual fund will be just as liquid as a stock. The only difference being that a stock is sold at different prices over the course of a trading day whereas a mutual fund is sold at the end of the day at the fund's net asset value.

There are different redemption fees according to which share class of the fund you buy and this will determine whether you pay an up-front, back-end, contingent deferred sales load or no-load. (The expense ratio usually differs with which share class you buy as well.)

If you are using Vanguard there is no need to invest in a particular share class. No-load funds are not technically a "share class."

  • Class A mutual fund shares generally have front-end sales charges (also known as a "load"). A shares are best for investors who plan to invest larger dollar amounts and will buy shares infrequently. If the purchase amount is high enough, you may qualify for "breakpoint discounts." Be sure to inquire about these discounts on the load if you plan to purchase additional shares of the fund (or mutual funds within the same fund family).
  • Class B shares are a share class of mutual funds that do not carry front-end sales charges, but instead charge a contingent deferred sales charge (CDSC) or "back-end load." Class B shares also tend to have higher 12b-1 fees than other mutual fund share classes. Class B shares can eventually exchange into Class A shares after seven or eight years. They may be best for investors who do not have enough to invest to qualify for a break level on the A share, but intend to hold the B shares for several years or more.
  • Class C Share mutual funds charge a "level load" annually, which is usually 1.00%, and this expense never goes away, making C share mutual funds the most expensive for investors who are investing for long periods of time. There may also be 12b-1 fees.
  • Class D mutual funds are often similar to no-load funds in that they are a mutual fund share class that was created as an alternative to the traditional and more common A shareB share and C share funds that are either front-load, back-load or level-load, respectively.
  • Load-waived funds are mutual fund share class alternatives to loaded funds, such as A share class funds. As the name suggests, the mutual fund load is waived (not charged).

Four of the best no-load fund families include Vanguard Investments,Fidelity InvestmentsT. Rowe Price, and PIMCO.

Additionally, mutual funds are required to maintain liquidity and the capacity to accommodate withdrawals. Funds typically have to keep a portion of their portfolio as cash. The funds are keeping cash balances of usually around 8% of the fund.



Read more: Consider These Fees When Evaluating Mutual Funds | Investopedia 

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