If a mutual fund or etf closes the fund, what will happen to my investments? Will it sell all the investments at the market price -at the time the fund/etf decided to close- then it gives every investor his percentage?

1 Answer 1


The most common reasons for a mutual fund shutting down are merging two of its funds or selling its business.

If the fund is acquired, the new manager takes over its operation and there is little to no impact to investors.

If fund is merged, investors will be given the opportunity to close their position. If they choose not to, they'll receive shares shares in the subsequent merged fund.

If a fund is closed, investors will receive a payout after deduction of fund expenses.

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