What is the difference between selling and liquidating a mutual fund?

Question

i have a college account with mutual funds in them and i am trying to turn them into cash but i dont know if i should sell them or liquidate them. help anyone?

Answer 1

To liquidate means to turn non-cash investments into cash. Selling does this, as does, surprisingly, liquidating.

I know very little about mutual funds but if it is possible to 'redeem' them through the fund managers then that may be cheaper than selling them through a broker. Don't Mutual funds have their own dealing platforms? Although these are probably not accessible by individuals.

Answer 2

At the institutional level, to sell is to receive compensation for the fund ownership.

To liquidate is to cash out the asset holdings of the fund and be left with "liquidity" - cash.

In your example - you simply need to "cash out" your funds, and, at the personal level the two terms you're using mean just that.

Answer 3

There is no difference

When you sell your mutual fund position, you eliminate it,

when you liquidate your mutual fund position you eliminate it.

Answer 4

There is no difference.