Liquidating a fund

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Short-term capital gains are taxed at a higher rate than long-term capital gains, so first consider selling your longer-term holdings if you need only part of the money.

Capital gains taxation rules change frequently, so consult a tax professional before you sell.

In addition, it may be prudent for the fund manager to set aside certain cash reserves before making final distributions to the fund owners.

This reserve could be held in the trust for any contingent liabilities as they become due.

In a bankruptcy, a liquidating trust may be formed whereby certain assets are placed in a trust for the benefit of creditors who may have certain claims against those assets.

A liquidating trust may also be an effective method for a fund manager to wind down a fund without having a significant role in the liquidation.

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The 2-decimal place net asset value ("NAV") disclosed for the funds and published in various publications was used to value transactions with a trade date of September 9, 2011.

Weeding out the poor performers and reinvesting in better prospects is a valid portfolio management exercise and is often preferable to a sudden and complete withdrawal.

Mutual fund liquidations, also referred to as "full closures," are never good news.

sued (district or city) on the place of registration of the Fund with the requirement of a statement of claim on liquidation.

The application apply basic package of documents regulating the activities of the fund (statutory documents, registration certificate, state of the tax base, the data on the property status of the fund, an extract from the USR and so forth.).

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