Mutual funds are very liquid. Keep in mind that if you buy or sell the transaction is completed at the end of the trading day and not in real time. So if you decide to sell at 10:00 AM and the market goes down 300 points you are selling at wherever the market closed and not at the time you placed your order.
Figure it takes about a day or two for the transaction to clear. Then if you are transferring the money someplace else give that another two or three days.
SOME funds charge you a penalty if you do not stay invested for a certain period of time (30 days, 60 days, 90 days) Most likely you will not find this on the "spec sheet" but if you go through the full prospectus you should be able to find this information.
They're generally pretty liquid. I've never looked at one that had any kind of penalties or delays about getting money in and out, a few days at most, just because you have to work through a broker.
Most people buy these things for longer term though, and if you make anything off the trade you have to declare that on your tax return and pay the capital gains rate on it
Again someone asking questions when they have no basic knowledge of the subject.
There are plenty of beginners guides or even look the subject up on Wikopedia.
Mutual funds come in a variety of forms: Hedge Funds, Unit Trust, Investment Trust, OEICS, ETFs and more.
They have different legal structure, operate differently etc.
Some funds are open-ended (they take in funds from new investors and issue more units. And when someone sells they cancel units. Thus they keep an equilibrium of NAV to price). Others are closed ended so have set capital and are subject to supply and demand as well as other influences).
Vanguard is a managed fund (ETFs are passive, non-managed) so I suppose it is a Unit Trust. I say suppose3 as I my knowledge is based around UK rather than US.
Quite frankly it is easy to find a bit of info about these funds what with the wonder of the internet.
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Mutual funds are liquid in terms of having immediate acces to your money, but to me mutual funds in the case you are outlining( 1month) would not be a good place to park your money. Have you thought about a money market account. Putting 6,000 in a mutual fund and taking it out one month later is not investing it is gambling. There are fees in most mutual funds for withdrawls within a certain time period. I looked up those two funds and they have low exp ratios-a big, big plus with me. My disclosure on this is that I am a buy and holder. You do not have to go through a broker to invest in Vanguard. Pay yourself first(my mantra).
I am a complete newbie to investing. I am trying to figure out just how liquid are mutual funds. And I am not sure exactly where on the spec sheet for the funds they answer these types of questions. Just so that we are not talking in generalities, I picked 2 specific ones... VGHCX (healthcare fund) and VFINX (index fund).
Let's say I invest $3k into each today. And let's say a month from now, I want to pull out all this money. Can I do it? Are there penalties? How fast do I get my money (days, weeks, months)?
