Mutual Fund Timing

Mutual Fund Timing

The practice of buying and selling shares in a mutual fund in order to profit from changes to its closing price each trading day. This is legal, but it can harm long-term investors in the mutual fund. As a result, most mutual funds charge a redemption fee on shareholders who sell their shares before a certain number of days have passed. Mutual fund timing should not be confused with market timing, which is a different concept altogether.
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