Mutual Fund Trades

Mutual Fund Trades

You can place orders to buy, sell, or exchange mutual funds. Orders executed at the end of the market day receive the net asset value ("NAV") calculated on that market day. Choose no-load funds from several well known fund families. When you place trades for a fund that is part of the no-transaction fee (NTF) program, there is no transaction charge. Funds that are not part of the NTF program are assessed a transaction charge of $19.95 per trade.

Early Redemption Policy: ShareBuilder reserves the right to charge $49.95 on the redemption or exchange of shares of any no-load, no-transaction fee mutual fund that is held less than 90 days, excluding the ING Money Market Fund. This charge is in addition to any applicable charges or expenses described in the fund's prospectus.

Mutual Fund Revenue-Sharing Arrangement

How do I place a mutual fund trade?

In the 'Mutual Funds' section under Trade > Trade Now, you can buy, sell, or exchange between mutual funds.

Mutual fund orders placed prior to the fund's cutoff time will receive the net asset value (NAV) calculated on that market day. Orders placed after the cutoff will receive the NAV calculated on the next market day. The cutoff time for all mutual funds orders is 3:30 PM ET on market days, excluding days when the market closes early (the cutoff time is 30 minutes prior to market close).

Buy
Select Buy if you just want to invest in a mutual fund. If you don't currently own the fund you want to buy, you'll need to meet the fund's initial minimum investment amount. Also, you'll need to read the fund's prospectus.

  1. Choose the fund you want to buy.
  2. Enter the amount you want to invest.
  3. Select a Funding Source and click Review Order.
  4. Look over the details of your order and choose if you want to reinvest cash dividends and capital gains distributions or have them paid out in cash. This option is only available on your initial purchase of the fund and can be changed later.
  5. To confirm that you've read the prospectus for the fund, click the checkbox.
  6. Click Place Order. You're done!

Sell
Select Sell if you just want to sell some or all of a mutual fund you already own.

  1. Choose the fund you want to sell from the drop-down menu.
  2. Enter how much of the fund you want to sell. Available options include a dollar amount, number of shares or a percentage of your shares of the fund.
  3. Click Review Order.
  4. Look over the details of your order and click Place Order. You're done!

Exchange
Select Exchange if you want to sell some or all of a mutual fund you own and use the proceeds to buy a different fund in the same fund family. If you don't currently own the fund you want to exchange into, you'll need to meet the fund's initial minimum investment amount. Also, you'll need to read the fund's prospectus and be familiar with the ShareBuilder Excessive Trading Policy.

  1. Choose the fund you want to sell (exchange from).
  2. Enter how much of the fund you want to sell. Available options include a dollar amount, number of shares or a percentage of your shares of the fund.
  3. Click Review Order.
  4. Now it's time to select the fund you want to buy (exchange into).

When selling a fund you own or placing a mutual fund exchange trade, keep in mind that the 'exchange from' (the sell) is a taxable event for non-retirement accounts (Individual, Joint, and Custodial) and will be reported on your 1099 tax form.

Early Redemption Policy: To discourage short-term trading, ShareBuilder reserves the right to charge $49.95 on the redemption or exchange of shares of any no-load, no-transaction fee mutual fund that is held less than 90 days, excluding the ING Money Market Fund. This charge is in addition to any applicable charges or expenses described in the fund's prospectus. Additionally, shares acquired through the reinvestment of capital gains distributions and dividends are not subject to this policy.

Investors should carefully consider information contained in the prospectus, including investment objectives, risks, charges and expenses. For a prospectus containing this and other important information, please visit the fund's detailed quote page, or contact a ShareBuilder Customer Service Associate. Please read the prospectus carefully before investing.

Important Information about this Money Market Fund

An investment in the fund is not a deposit in a bank, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although the fund seeks to preserve the value of your investment at $1.00 per share, it is possible to lose money by investing in the fund.

Performance data represents past performance and does not guarantee future results.

The fund's most recent 7-day yield may be lower or higher than the figure quoted. Yield and return will vary.

Performance data and other information may be obtained by calling 1-800-888-9723 from 8 AM to 5 PM ET, Monday through Friday.

An investment in the fund is not a deposit in a bank, and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency.

What are the charges for mutual fund trades?

ShareBuilder allows you to invest in over 1000 no-load mutual funds from well-known fund families. The cost to invest depends on whether the fund is part of our no-transaction fee (NTF) program, and whether you invest using a regular mutual fund trade, or through an Automatic Investment Plan. All mutual fund investments are also subject to meeting the investment minimums as defined by the fund. Keep in mind that costs and other expenses apply to continued investment in a fund and are described in each fund's current prospectus. Please read the prospectus carefully before investing.

Two Ways to Invest Online
Trade Type NTF Funds Other Funds
Mutual Fund Trades

Enter an order to buy, sell, or exchange shares – orders are processed at the next market close.

No charge $19.95
Automatic Investment Plan

Set up an Automatic Investment Plan to invest in a mutual fund on a recurring or scheduled basis. Automatic investment orders take place on Tuesdays.

No charge $3.95

Important Note about Investment Minimums
No matter which mutual fund you select, all funds have an initial minimum investment that must be met when investing in a new fund for the first time (when establishing a new position). A fund's investment minimums are listed under Fund Profile on the Fund Snapshot/Quote page – you can get there by entering the fund symbol into the Get Quote tool.

The initial investment must be made using a mutual fund trade, and not as a part of an Automatic Investment Plan (except for ING Funds). Once the initial investment in the fund has been made, additional investments can be made either with a mutual fund trade, or by using an automatic investment plan, each subject to minimums. Minimum investments can vary based on your account type (for example, IRA accounts may be given a lower minimum).

Also be aware that all mutual funds are subject to our Mutual Fund Excessive Trading Policy, and NTF funds are subject to our Mutual Fund Early Redemption Policy, listed below. For those who wish to invest over the phone, all mutual fund orders (including those for NTF funds) are $19.95. Keep in mind that costs and other expenses apply to continued investment in a fund and are described in each fund's current prospectus.

Mutual Fund Early Redemption Policy: To discourage short-term trading, ShareBuilder reserves the right to charge $49.95 on the redemption or exchange of shares of any no-load, no-transaction fee mutual fund that is held less than 90 days, except for money market funds. This charge is in addition to any applicable charges or expenses described in the fund's prospectus. Additionally, shares acquired through the reinvestment of capital gains distributions and dividends are not subject to this policy.

Mutual Fund Excessive Trading Policy: ShareBuilder has adopted an Excessive Trading Policy to respond to the demands of the mutual fund families – which make their funds available through ShareBuilder – to discourage market timing and excessive trading activity in mutual funds.

Mutual Fund Investment Minimums

Many mutual funds require that an initial minimum investment amount be met when purchasing a fund for the first time. The initial minimum investment amount and additional investment minimums for mutual funds can be found in the Mutual Fund Research section of the site.

Note: Each fund family or the distributor of those funds may reserve the right to liquidate sufficient shares should you fail to reach and maintain the account minimum required, as specified in the fund's prospectus.