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Transferring mutual funds from one bank to another


transferring mutual funds from one bank to another

Wire transfer is the electronic transfer of funds between people or entities. Wire transfers are made from one bank to another, before being deposited. Exchange privilege - The ability to transfer money from one mutual fund to another within the same fund family. Expense ratio - The ratio between a mutual. Funds can be transferred with one of the 16 objectives: **Timeline for funds transfer is subject to the recipient bank's internal process.

Transferring mutual funds from one bank to another -

No

Your online transfer request will state the reason for a rejection, if it occurs. Keep in mind, to view your transfer activity, you'll need to use a desktop rather than a mobile device. When your transfer gets placed on hold or rejected, we'll also email you with an explanation and with any steps you can take to fix the issue.

Common reasons for transfer rejections

For Ally Bank transfers:

  • You're attempting to transfer before your deposit holding period expires. There's a 6-business-day hold if you attempt to transfer funds back to the outside account you just withdrew from. Additionally, if you transfer funds from one account to another, and then attempt to transfer the same funds to a third account that’s not the originating account, you’ll encounter a day hold.
  • Your form's filled out incorrectly. If this is the case, we'll email you with instructions on how to provide us with accurate information.
  • Your account's restricted. If this is the case, we'll ask you to provide us with documentation to lift the restriction.
  • Your ACH profile's inaccurate. If the issue is with your profile at another bank, you may need to contact them.
  • The bank you’re trying to transfer to or from is pending verification. If we're unable to verify, we'll email you with the documents we may need to finish linking your other account.

For most Ally Invest online transfers:

  • You entered an account number incorrectly. To resolve, resubmit the request with the correct account number.
  • Your transfer would result in an overdraft for your other account. In this case, contact the financial institution that holds the other account.
  • The other firm you’re transferring to or from doesn’t use the same ACAT system we use or the assets are black-listed. Contact the other firm for further guidance.

For most Ally Invest paper transfers:

  • The document you signed needed a hand signature rather than an eSignature. To resolve, you’d need to provide us with the hand-signed version of the document.
  • You have incomplete statements or instructions on a transfer form. To resolve, call us, or send us the completed form.

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Once you log in to online banking, choose Transfers, and then select Manage Linked Accounts.

We'll ask you to provide the following information for your other account:

  • Routing number
  • Account number
  • Account type

We verify the ownership of your account before you can use it for transfers. Call us at if you need help. We’re here 24/7.

If you’re transferring money between an Ally Invest account and an account at another institution, go to Transfers and then select Invest Transfers.

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- A -

Alpha - The amount of return expected from an investment from its inherent value.

Alternative Minimum Tax (AMT) - Federal tax, revamped by the Tax Reform Act of , aimed at ensuring that wealthy individuals, trusts, estates and corporations pay at least some tax.

Annual report - The yearly audited record of a corporation or a mutual fund's condition and performance that is distributed to shareholders.

Annualized - A procedure where figures covering a period of less than one year are extended to cover a month period.

Annualized rate of return - The average annual return over a period of years, taking into account the effect of compounding. Annualized rate of return also can be called compound growth rate.

Appreciation - The increase in value of a financial asset.

Asset allocation - The process of dividing investments among cash, income and growth buckets to optimize the balance between risk and reward based on investment needs.

Asset class - Securities with similar features. The most common asset classes are stocks, bonds and cash equivalents.

Average maturity - For a bond fund, the average of the stated maturity dates of the debt securities in the portfolio. Also called average weighted maturity. In general, the longer the average maturity, the greater the fund's sensitivity to interest-rate changes, which means greater price fluctuation. A shorter average maturity usually means a less sensitive - and consequently, less volatile - portfolio.



- B -

Balanced fund - Mutual funds that seek both growth and income in a portfolio with a mix of common stock, preferred stock or bonds. The companies selected typically are in different industries and different geographic regions.

Bear market - A bear market is a prolonged period of falling stock prices, usually marked by a decline of 20% or more. A market in which prices decline sharply against a background of widespread pessimism, growing unemployment or business recession. The opposite of a bull market.

Benchmark - A standard, usually an unmanaged index, used for comparative purposes in assessing performance of a portfolio or mutual fund.

Best-in-class - 

  • A top performing product, service or person within a category or peer group.

  • A sustainable investment style that involves investing in companies that lead their peer groups with respect to sustainability performance.

Beta - A measurement of volatility where 1 is neutral; above 1 is more volatile; and less than 1 is less volatile.

Blue chip - A high-quality, relatively low-risk investment; the term usually refers to stocks of large, well-established companies that have performed well over a long period. The term Blue Chip is borrowed from poker, where the blue chips are the most valuable.

Board of Trustees - A governing board elected or appointed to direct the policies of an institution.

Bond - A bond acts like a loan or an IOU that is issued by a corporation, municipality or the U.S. government. The issuer promises to repay the full amount of the loan on a specific date and pay a specified rate of return for the use of the money to the investor at specific time intervals.

Bond fund - A mutual fund that invests exclusively in bonds.

Breakpoint - The level of dollar investment in a mutual fund at which an investor becomes eligible for a discounted sales fee. This level may be achieved through a single purchase or a series of smaller purchases.

Bull market - Any market in which prices are advancing in an upward trend. In general, someone is bullish if they believe the value of a security or market will rise. The opposite of a bear market.



- C -

Capital - The funds invested in a company on a long-term basis and obtained by issuing preferred or common stock, by retaining a portion of the company's earnings from date of incorporation and by long-term borrowing.

Capital gain - The difference between a security's purchase price and its selling price, when the difference is positive.

Capital gains ex-date - The date that a shareholder is no longer eligible for a capital gain distribution that has been declared by a security or mutual fund.

Capital gains long term - The difference between an asset's purchase price and selling price (when the difference is positive) that was earned in more than one year.

Capital gains reinvest NAV - The difference between an asset's purchase price and selling price (when the difference is positive) that was automatically in vested in more shares of the security or mutual fund invested at the security's net asset value.

Capital gains short term - The difference between an asset's purchase price and selling price (when the difference is positive) that was earned in under one year.

Capital loss - The amount by which the proceeds from a sale of a security are less than its purchase price.

Capitalization - The market value of a company, calculated by multiplying the number of shares outstanding by the price per share.

Cash equivalent - A short-term money-market instrument, such as a Treasury bill or repurchase agreement, of such high liquidity and safety that it is easily converted into cash.

Center for Carbon Transition (CTT) - A JPMorgan Chase initiative that provides clients in the Corporate & Investment Bank and Commercial Banking with centralized access to sustainability-focused financing, research and advisory solutions. 

Climate action + - An investor-led initiative to encourage better climate disclosures and emission reduction strategies for a group of large greenhouse gas-emitting companies.

Common stock - Securities that represent ownership in a corporation; must be issued by a corporation.

Contingent deferred sales charge (CDSC) - A back-end sales charge imposed when shares are redeemed from a fund. This fee usually declines over time.

Corporate bond - A long-term bond issued by a corporation to raise outside capital.

Corporate engagement - Shareholders entering into discussions with company management in order to better understand the company’s management of certain risks and/or to influence a company’s decision making process.

Corporate social responsibility - A business’ commitment to their customers, employees and communities around the world to be conscious of the kind of impact they are having on all aspects of society, including economic, social, and environmental. 

Country breakdown - Breakdown of securities in a portfolio by country.

Custodian - A bank that holds a mutual fund's assets, settles all portfolio trades and collects most of the valuation data required to calculate a fund's net asset value (NAV).

Cut-off time - The time of day when a transaction can no longer be accepted for that trading day.



- D -

Daily dividend factor (date) - Daily dividend distributed by a money market mutual fund.

Default - Failure of a debtor to make timely payments of interest and principal as they come due or to meet some other provision of a bond indenture.

Distribution schedule - A tentative distribution schedule of a mutual fund's dividends and capital gains.

Diversification - The process of owning different investments that tend to perform well at different times in order to reduce the effects of volatility in a portfolio, and also increase the potential for increasing returns.

Dividend - A dividend is a portion of a company's profit paid to common and preferred shareholders. Dividends provide an incentive to own stock in stable companies even if they are not experiencing much growth. Companies are not required to pay dividends.

Dividend paid - Amount paid to the shareholder of record a security or mutual fund.

Dividend reinvest NAV - Dividends paid to the shareholder of record that are automatically invested in more shares of the security or mutual fund that are purchased at the security's net asset value.

Dividend yield - Annual percentage of return earned by a mutual fund. The yield is determined by dividing the amount of the annual dividends per share by the current net asset value or public offering price.

Dollar cost averaging - Investing the same amount of money at regular intervals over an extended period of time, regardless of the share price. By investing a fixed amount, you purchase more shares when prices are low, and fewer shares when prices are high. This may reduce your overall average cost of investing.

Dow Jones Industrial Average (Dow) - The most commonly used indicator of stock market performance, based on prices of 30 actively traded blue chip stocks, primarily major industrial companies. The Average is the sum of the current market price of 30 major industrial companies' stocks divided by a number that has been adjusted to take into account stocks splits and changes in stock composition.



- E -

Environmental, social and governance (ESG) integration - The systematic inclusion of financially material ESG factors in investment analysis and investment decisions, with the goal of enhancing long-term, risk adjusted financial returns:

  • Environmental - Factors that relate to the quality and functioning of the natural environment, and natural systems, e.g., carbon emissions, environmental regulations, water stress and waste.

  • Social - Factors that relate to the rights, well-being, and interests of people and communities, e.g., labor management, health & safety.

  • Governance - Factors that relate to the management and oversight of companies and investee entities, e.g., board structure, pay. 

EPS - The portion of a company's profit allocated to each outstanding share of common stock. EPS serves as an indicator of a company's profitability.

Equities - Shares issued by a company which represent ownership in it. Ownership of property, usually in the form of common stocks, as distinguished from fixed-income securities such as bonds or mortgages. Stock funds may vary depending on the fund's investment objective.

Equity fund - A mutual fund/collective fund in which the money is invested primarily in common and/or preferred stock. Stock funds may vary, depending on the fund's investment objective.

Exclusions - 

  • An investment process that excludes specific investments or classes of investment from the investment universe based on specific values or norms-based criteria.

  • A sustainable investment style that excludes certain sectors, companies or practices based on specific values or norms-based criteria from a fund or portfolio. For example, certain industries, such as defense, tobacco or fossil fuel producers, can systematically be excluded from investment.

Ex-Dividend - The interval between the announcement and the payment of the next dividend for a stock.

Ex-Dividend date - The date on which a stock goes ex-dividend. Typically about three weeks before the dividend is paid to shareholders of record.

Exchange privilege - The ability to transfer money from one mutual fund to another within the same fund family.

Expense ratio - The ratio between a mutual fund's operating expenses for the year and the average value of its net assets.

Expense ratio (date) - Amount, expressed as a percentage of total investment that shareholders pay annually for mutual fund operating expenses and management fees.



- F -

Federal Funds Rate (Fed Funds Rate) - The interest rate charged by banks with excess reserves at a Federal Reserve district bank to banks needing overnight loans to meet reserve requirements. The most sensitive indicator of the direction of interest rates, since it is set daily by the market, unlike the prime rate and the discount rate, which are periodically changed by banks and by the Federal Reserve Board.

Federal Reserve Board (The Fed) - The governing board of the Federal Reserve System, it regulates the nation's money supply by setting the discount rate, tightening or easing the availability of credit in the economy.

Financial materiality - An event or information that are reasonably likely to impact the financial condition or operating performance of a company and should be considered during the investment decision-making process. 

Fixed income fund - A fund or portfolio where bonds are primarily purchased as investments. There is no fixed maturity date and no repayment guarantee.

Fixed income security - A security that pays a set rate of interest on a regular basis.

Fund - A pool of money from a group of investors in order to buy securities. The two major ways funds may be offered are (1) by companies in the securities business (these funds are called mutual funds); and (2) by bank trust departments (these are called collective funds).



- G -

Green bonds - A type of fixed-income instrument that is specifically earmarked to raise money for climate and environmental friendly projects.

Green Bond Principles - Voluntary process guidelines that recommend transparency and disclosure and promote integrity in the development of the Green Bond market by clarifying the approach for issuance of a Green Bond.

Growth investing - Investment strategy that focuses on stocks of companies and stock funds where earnings are growing rapidly and are expected to continue growing.

Growth stock - Typically a well-known, successful company that is experiencing rapid growth in earnings and revenue, and usually pays little or no dividend.

Growth-style funds - Growth funds focus on future gains. A growth fund manager will typically invest in stocks with earnings that outperform the current market. The manager attempts to achieve success by focusing on rapidly growing sectors of the economy and investing in leading companies with consistent earnings growth. The fund grows primarily as individual share prices climb.



- I -

Impact investing - A sustainable investment style that seeks to generate measurable positive social or environmental impact alongside financial return. Investment themes include activities such as affordable housing, education and healthcare.

Investment stewardship - Engaging with companies and voting proxies to ensure our clients' interests are represented and protected and the company is focused on responsible allocation of capital and long-term value creation.

Index - An investment index tracks the performance of many investments as a way of measuring the overall performance of a particular investment type or category. The S&P is widely considered the benchmark for large-stock investors. It tracks the performance of large U.S. company stocks.

Individual Retirement Account (IRA) - A tax-deferred account to which an eligible individual can make annual contributions up to $3, ($6, for a single-income married couple filing a joint income tax return).

Inflation - A rise in the prices of goods and services, often equated with loss of purchasing power.

Interest rate - The fixed amount of money that an issuer agrees to pay the bondholders. It is most often a percentage of the face value of the bond. Interest rates constitute one of the self-regulating mechanisms of the market, falling in response to economic weakness and rising on strength.

Interest-rate risk - The possibility of a reduction in the value of a security, especially a bond, resulting from a rise in interest rates.

Investment advisor - An organization employed by a mutual fund to give professional advice on the fund's investments and asset management practices.

Investment company - A corporation, trust or partnership that invests pooled shareholder dollars in securities appropriate to the organization's objective. Mutual funds, closed-end funds and unit investment trusts are the three types of investment companies.

Investment grade bonds - A bond generally considered suitable for purchase by prudent investors.

Investment objective - The goal of a mutual fund and its shareholders, e.g. growth, growth and income, income and tax-free income.



- J -

Junk bond - A lower-rated, usually higher-yielding bond, with a credit rating of BB or lower.



- L -

Large-cap - The market capitalization of the stocks of companies with market values greater than $10 billion.

Letter of intent - A letter of intent may also be issued by a mutual fund shareholder to indicate that he/she would like to invest certain amounts of money at certain specified times. In exchange for signing a letter of intent, the shareholder would often qualify for reduced sales charges. A letter of intent is not a contract and cannot be enforced, it is just a document stating serious intent to carry out certain business activities.

Lipper ratings - The Lipper Mutual Fund Industry Average is the performance level of all mutual funds, as reported by Lipper Analytical Services of New York. The performance of all mutual funds is ranked quarterly and annually, by type of fund such as aggressive growth fund or income fund. Mutual fund managers try to beat the industry average as well as the other funds in their category.

Liquidity - The ability to have ready access to invested money. Mutual funds are liquid because their shares can be redeemed for current value (which may be more or less than the original cost) on any business day.

Loads (back-end, front-end and no-load) - Sales charges on mutual funds. A back-end load is assessed at redemption (see contingent deferred sales charge), while a front-end load is paid at the time of purchase. No-load funds are free of sales charges.

Long-term investment strategy - A strategy that looks past the day-to-day fluctuations of the stock and bond markets and responds to fundamental changes in the financial markets or the economy.



- M -

Management fee - The amount paid by a mutual fund to the investment advisor for its services.

Market price - The current price of an asset.

Market risk - The possibility that an investment will not achieve its target.

Market timing - A risky investment strategy that calls for buying and selling securities in anticipation of market conditions.

Maturity - The date specified in a note or bond on which the debt is due and payable.

Maturity distribution - The breakdown of a portfolio's assets based on the time frame when the investments will mature.

Median Market Cap - The midpoint of market capitalization (market price multiplied by the number of shares outstanding) of the stocks in a portfolio, where half the stocks have higher market capitalization and half have lower.

Mid-cap - The market capitalization of the stocks of companies with market values between $3 to $10 billion.

Money market mutual fund - A short-term investment that seeks to protect principal and generate income by investing in Treasury bills, CDs with maturities less than one year and other conservative investments.

Morningstar ratings - System for rating open- and closed-end mutual funds and annuities by Morningstar Inc. of Chicago. The system rates funds from one to five stars, using a risk-adjusted performance rating in which performance equals total return of the fund.

Mutual fund - Fund operated by an investment company that raises money from shareholders and invests it in stocks, bonds, options, commodities or money market securities.



- N -

NASDAQ - National Association of Securities Dealers Automated Quotations system, which is owned and operated by the National Association of Securities Dealers. NASDAQ is a computerized system that provides brokers and dealers with price quotations for securities traded over-the-counter as well as for many New York Stock Exchange listed securities.

Net Asset Value per share (NAV) - The current dollar value of a single mutual fund share; also known as share price. The fund's NAV is calculated daily by taking the fund's total assets, subtracting the fund's liabilities, and dividing by the number of shares outstanding. The NAV does not include the sales charge. The process of calculating the NAV is called pricing.

Number of Holdings - Total number of individual securities in a fund or portfolio.



- P -

P/B Ratio - The price per share of a stock divided by its book value (net worth) per share. For a stock portfolio, the ratio is the weighted average price-to-book ratio of the stocks it holds.

Paris Agreement - An agreement within the United Nations Framework Convention on Climate Change stating a global goal to keep the increase in global temperatures relative to pre-industrial levels to well below 2° Celsius while pursuing efforts to limit the increase to ° Celsius.

Par value - Par value is the amount originally paid for a bond and the amount that will be repaid at maturity. Bonds are typically sold in multiples of $1,

Portfolio - A collection of investments owned by one organization or individual, and managed as a collective whole with specific investment goals in mind.

Portfolio allocation - Amount of assets in a portfolio specifically designated for a certain type of investment.

Portfolio holdings - Investments included in a portfolio.

Portfolio manager - The person or entity responsible for making investment decisions of the portfolio to meet the specific investment objective or goal of the portfolio.

Positive tilt - 

  • An investment process which tilt a fund of portfolio toward a specific sector, company, or project based on specific values or norms-based criteria.

  • A sustainable investment style in which the portfolio will be tilted toward sectors, companies, or projects with positive ESG characteristics.

Power Purchase Agreements (PPAs) - a financial agreement where a developer arranges for the design, permitting, financing and installation of a solar energy system on a customer’s property at little to no cost

Preferred stock - A class of stock with a fixed dividend that has preference over a company's common stock in the payment of dividends and the liquidation of assets. There are several kinds of preferred stock, among them adjustable-rate and convertible.

Premium - The amount by which a bond or stock sells above its par value.

Price-to-book - The price per share of a stock divided by its book value (net worth) per share. For a stock portfolio, the ratio is the weighted average price-to-book ratio of the stocks it holds.

Price-to-earnings (P/E) Ratio - A stock's price divided by its earnings per share, which indicates how much investors are paying for a company's earning power.

P/E Ratio (1 yr trailing) (long position) - Price of a stock divided by its earnings from the latest year.

P/E Ratio (1 yr forecast) - Price of a stock divided by its projected earnings for the coming year.

Prospectus - Formal written offer to sell securities that sets forth the plan for proposed business enterprise or the facts concerning an existing one that an investor needs to make an informed decision. Prospectuses are also issued by mutual funds, containing information required by the SEC, such as history, background of managers, fund objectives and policies, financial statement, risks, services and fees.

Proxy - A shareholder vote on matters that require shareholders' approval.

Public offering price (POP) - A mutual fund share's purchase price, including sales charges.



- Q -

Quality distribution - The breakdown of a portfolio's assets based on quality rating of the investments.



- R -

R2 - The percentage of a fund's movements that result from movements in the index ranging from 0 to A fund with an R2 of means that percent of the fund's movement can completely be explained by movements in the fund's external index benchmark.

Ratings - Evaluations of the credit quality of bonds usually made by independent rating services. Ratings generally measure the probability of timely repayment of principal and interest on debt securities.

Recession - A downturn in economic activity, defined by many economists as at least two consecutive quarters of decline in a country's gross domestic product.

Redemption - Sale of mutual fund shares by a shareholder.

Reinvestment option - Refers to an arrangement under which a mutual fund will apply dividends or capital gains distributions for its shareholders toward the purchase of additional shares.

Relative risk and potential return - The amount of potential return from an investment as related to the amount of risk you are willing to accept.

Renewable Energy Certificates (RECs) - A market-based instrument that is issued when one megawatt-hour of electricity is generated and delivered to the electricity grid from a renewable energy resource.

Rights of accumulation - The right to buy over a period of time. For example, this might be done by an institutional investor to avoid making a single substantial purchase that might drive up the market price, or by a retail investor who wants to reduce risk by dollar cost averaging.

Risk tolerance - The degree to which you can tolerate volatility in your investment values.



- S -

Sales charge - An amount charged for the sale of some fund shares, usually those sold by brokers or other sales professionals. By regulation, a mutual fund sales charge may not exceed percent of an investment purchase. The charge may vary depending on the amount invested and the fund chosen. A sales charge or load is reflected in the asked or offering price. See loads.

Sector - A group of similar securities, such as equities in a specific industry.

Sector breakdown - Breakdown of securities in a portfolio by industry categories.

Securities - Another name for investments such as stocks or bonds. The name 'securities' comes from the documents that certify an investor's ownership of particular stocks or bonds.

Securities and Exchange Commission (SEC) - The federal agency created by the Securities and Exchange Act of that administers the laws governing the securities industry, including the registration and distribution of mutual fund shares.

Share - A unit of ownership in an investment, such as a share of a stock or a mutual fund.

Share class net assets (date) - Fund assets included in a specific share class.

Share classes - Classes represent ownership in the same fund but charge different fees. This can enable shareholders to choose the type of fee structure that best suits their particular needs.

Sharpe Ratio - A risk-adjusted measure that measures reward per unit of risk. The higher the sharpe ratio, the better. The numerator is the difference between the Fund's annualized return and the annualized return of the risk-free instrument (T-Bills).

Short-term investment - Asset purchased with an investment life of less than a year.

Small-cap - The market capitalization of the stocks of companies with market values less than $3 billion.

Social bonds - A bond instrument where the proceeds will be exclusively applied to finance or refinance in part or in full new and/or existing eligible Social Projects.

Standard & Poor's Index - Broad-based measurement of changes in stock market conditions based on the average performance of widely held common stocks commonly known as the Standard & Poor's or S&P

Standard Deviation - A statistical measure of the degree to which an individual value in a probability distribution tends to vary from the mean of the distribution.

Statement of additional information (SAI) - The supplementary document to a prospectus that contains more detailed information about a mutual fund; also known as 'Part B' of the prospectus.

Stock - A long-term, growth-oriented investment representing ownership in a company; also known as 'equity.'

Stockholder - The owner of common or preferred stock of a corporation. Also called 'shareholder.'

Sustainability Accounting Standards Board (SASB) - A nonprofit organization with a mission to develop sustainability-related accounting standards.

Sustainability Bonds - Bond instrument where the proceeds will be exclusively applied to finance or re-finance a combination of both Green and Social Projects.

Sustainable Development Goals (SDGs) - A United Nations Initiative for all countries to adopt 17 goals that address global challenges including poverty, inequality, climate change, environmental degradation, and peace and justice. 

Sustainable investing - A forward-looking investment approach that aims to deliver long-term sustainable financial return in a fast changing world. It encompasses a wide ranging spectrum of approaches, the core of which starts with the incorporation of ESG information. 

Sustainability-Linked Bonds (SLB’s) - Bond instrument for which the financial and/or structural characteristics can vary depending on whether the issuer achieves predefined Sustainability/ ESG objectives.

Systematic investment plan - A service option that allows investors to buy mutual fund shares on a regular schedule, usually through bank account deductions.



- T -

Task Force On Climate-related Financial Disclosures (TCFD) - A framework through which companies can improve and increase the reporting of climate-related financial information.

Tax-exempt income - Tax-exempt income is income that is exempt from income taxes. A purchaser of state municipal bonds is exempt from federal taxation on the income earned from the bonds.

Thematic: 

  • An investment process that focuses on themes or assets specifically related to topic selected based on specific values or norms-based criteria.

  • A sustainable investment style that focuses on themes or assets specifically related to sustainability, such as renewable energy, water or healthcare.

Time horizon - The amount of time that you expect to stay invested in an asset or security.

Top 10 holdings - Ten largest holdings in a portfolio based on asset value.

Top 10 long and short positions - The top 10 holdings ranked by market value in each position category (long and short). A long position is one in which an investor buys shares of stock and as an equity holder will profit if the price of the stock rises. With a short position an investor will sell shares of stock that they do not own but have borrowed. The investor in a short position will profit if the price of the stock falls.

Top five contributors - Top five industries in a portfolio based on amount of invested assets.

Top five detractors - Five assets in a portfolio that generated largest negative returns (losses).

Top five holdings - Top five securities in a portfolio based on amount of invested assets.

Top five industries - Top five industries in a portfolio based on amount of invested assets.

Total return - Accounts for all of the dividends and interest earned before deductions for fees and expenses, in addition to any changes in the value of the principal, including share price, assuming the funds' dividends and capital gains are reinvested. Often, this percentage is presented in a specified period of time (one, five, ten years and/or life of fund). Also, a method of calculating an investment's return that takes share price changes and dividends into account.

Tracking Error - The active risk of the portfolio. It determines the annualized standard deviation of the excess returns between the portfolio and the benchmark.

Transfer agent - An agent, usually a commercial bank, appointed to monitor records of stocks, bonds and shareholders. A transfer agent keeps a record of the name of each registered shareholder, his or her address, the number of shares owned, and sees that certificates presented for the transfer are properly canceled and new certificates are issued in the name of the new owner.

Treasury bill - Negotiable short-term (one year or less) debt obligations issued by the U.S. government and backed by its full faith and credit.

Treasury bond - Negotiable long-term (10 years or longer) debt obligations issued by the U.S. government and backed by its full faith and credit.

Treasury note - Negotiable medium-term (one year to 10 years) debt obligations issued by the U.S. government and backed by its full faith and credit.

Treasury security - Securities issued by the U.S. Treasury Department and backed by the U.S. government.

Trustee - 1. An organization or individual who has responsibility for one or more accounts. 2. An individual who, as part of a fund's board of trustees, has ultimate responsibility for a fund's activities.

Turnover Ratio - Percentage of holdings in a mutual fund that are sold in a specified period.


 

-U-

United Nations-convened Net-Zero Asset Owner Alliance - An international group of institutional investors delivering on a commitment to transition investment portfolios to net-zero GHG emissions by  

United Nations Global Compact (UNGC) - Strategic policy and advocacy initiative that aim to mobilize a global movement of sustainable companies and stakeholders in the areas of human rights, labor, environment and anti-corruption.

United Nations-Supported Principles for Responsible Investment (PRI) - An official network of investors that works to promote sustainable investment through the incorporation of environmental, social and governance factors.



- V -

Valuation - An estimate of the value or worth of a company; the price investors assign to an individual stock.

Value investing - A strategy whereby investors purchase equity securities that they believe are selling below estimated true value. The investor can profit by buying these securities then selling them once they appreciate to their real value.

Value stock - Typically an overlooked or underpriced company that is growing at slower rates.

Value-style funds - Value-style funds typically hold company stocks that are undervalued in the market. Fundamentally strong companies whose stocks are inexpensive but trending upward may also be selected for value funds.

Volatility - The amount and frequency with which an investment fluctuates in value.



- W -

Wtd. Avg. Market Cap - Most indexes are constructed by weighting the market capitalization of each stock on the index. In such an index, larger companies account for a greater portion of the index. An example is the S&P Index.

Weighted average maturity - A Fund's WAM calculates an average time to maturity of all the securities held in the portfolio, weighted by each security's percentage of net assets. The calculation takes into account the final maturity for a fixed income security and the interest rate reset date for floating rate securities held in the portfolio. This is a way to measure a fund's sensitivity to potential interest rate changes.



- Y -

YTD total return - Year-to-date return on an investment including appreciation and dividends or interest.

YTD - Year-to-date return on an investment including appreciation and dividends or interest.

YTD Return (w load) - Year-to-date return on an investment including appreciation and dividends or interest, minus any applicable expenses or charges.

Yield - Annual percentage rate of return on capital. The dividend or interest paid by a company expressed as a percentage of the current price.

Yield to maturity - Concept used to determine the rate of return an investor will receive if a long-term, interest-bearing investment, such as a bond, is held to its maturity date.

Yield to maturity distribution - The average rate of return that will be earned on a bond if held to maturity.



- # -

12b-1 fee - A mutual fund fee, named for the SEC rule that permits it, used to pay for broker-dealer compensation and other distribution costs. If a fund has a 12b-1 fee, it will be disclosed in the fee table of the fund's prospectus.

day SEC yield (date) - Represents net investment income earned by a fund over a day period, expressed as an annual percentage rate based on the fund's share price at the end of the day period. The day yield should be regarded as an estimate of investment income and may not equal the fund's actual income distribution rate.

52 Week High - A security's trading high point over the last week period.

52 Week Low - A security's trading low point over the last week period.

Источник: mynewextsetup.us

Mutual fund units can neither be transferred from one holder to another, nor gifted to another person

—Tejas Shah

The answer to this question is exceedingly simple: the scenario that you are describing is just not possible. Units of a mutual fund cannot be transferred from one holder to another, nor can they be gifted by one person to another. Mutual funds are also not allowed to accept ‘third-party’ payments—meaning, you cannot use money from your wife’s bank account to make investments in your name.

If you want the units to be in your name, your wife would need to first transfer the cash to your account (or a bank account where you are a joint holder), and then you can use that amount to invest in the fund in your own name.

The only situation in which the units from a mutual fund folio can be transmitted from one holder to another holder (and a different folio) is upon the demise of the holder of the source folio.

I am 61 years old and want to start investing in mutual funds. Though I have a disciplined financial life, my computer literacy is not enough for me to track funds online. What is the fastest offline way of tracking my investments? Please tell me all the options that are available.

—Raman Awasthi

When it comes to online and offline investing, there are different ways to go about it, depending on your level of comfort. One can invest and track online, or invest offline and track offline (using either financial news portals or on-demand email statements), or invest and track offline. Among these, the first one is more efficient, but if you are not comfortable with investing or tracking online, you are not without options.

To do effective tracking using offline mechanisms, please ensure that you use a same, correct address in all your mutual fund folios. If you are investing on a monthly basis (using SIP, for example), then the mutual fund company will send you a transaction statement containing, among other things, the current number of units in the folio.

You can maintain a collection of these statements and keep a ledger of these transactions to track them by yourself. More importantly, the depository services providers will also send you a comprehensive, consolidated account statement once every 6 months, which will detail all your holdings and transactions for the past 6 months. Between the transaction statements and the consolidated statement, you will have a very good track of how your money is doing.

I am currently investing Rs5, per month in five funds each. Large-cap—BSL Frontline Equity Fund and Franklin India Bluechip Fund; Multi-cap/flexi-cap—L&T Equity Fund and I-Pru Value Discovery Fund; and Franklin India Prima Fund. Should I continue SIPs in these funds? Also, I am looking to start three new SIPs of Rs5, each, for long term horizon of years. Please suggest three good funds to invest in (including mid-cap and small-cap funds) for my new investments, keeping in view my existing ongoing SIPs as well.

—Prerna Gupta

You are presently investing 40% in two large-cap funds, 40% in two multi-cap funds and 20% in a mid-cap fund. Most of the funds you are investing in are pretty good funds as well. However, I would suggest a couple of minor changes—one to your allocation and, consequently, the other to your fund choices. In such portfolios, it is typically good to have more than one mid-cap fund to bring in a diversity of fund management styles to the portfolio. However, I would not want you to increase your mid-cap allocation to 40% in the portfolio since that would bring in too much risk. So, I would recommend that you change your multi-cap allocation to 30% and reduce it to one fund. You can move the remaining 10% to the mid-cap segment, increasing it to a total of 30%, and split it evenly (15% each) between two funds. Consequent to this, you would also need to revisit your fund choices. I would recommend that you retain the ICICI Prudential fund in the multi-cap segment. You can move out of the L&T Equity fund (a diversified fund) and into L&T India Value fund—a highly rated mid-cap fund. At the end of this shuffle, you’ll be investing ₹ 5, each in two large-cap funds, ₹ 7, in a multi-cap fund, and ₹ 3, each in two mid-cap funds (L&T India Value fund and Franklin India Prima fund).

As far as the new money goes, you do not need fresh schemes to invest it in. You can spread out the ₹ 5, in these five funds in the same proportion—by adding ₹ , each to the large-cap funds, ₹ , to the multi-cap fund, and ₹ 2, each to the mid-cap funds.

Srikanth Meenakshi is co-founder and COO, mynewextsetup.us

Queries and views at [email protected]

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Источник: mynewextsetup.us
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It sometimes takes 1 to 2 business days before our system displays the transfer in your account. Check your email for updates. We’ll email when your transfer is initiated, and if it gets placed on hold or rejected, we’ll email with an explanation.

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Your form may be filled out incorrectly or missing information. If this is the case, we’ll email you with instructions on how to provide us with the accurate information. If your form was rejected for another reason, we’ll email you with an explanation and with any steps you can take to fix the issue.

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You can now request an account transfer online. Once requested, it takes generally 5 - 7 business days for us to process the request. As an incentive, if you fund your account via account transfer for $ or more, we’ll reimburse your account transfer fees up to $

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Selling shares

You could lose money by investing in American Funds U.S. Government Money Market Fund. Although the fund seeks to preserve the value of your investment at $ per share, it cannot guarantee it will do so. An investment in the fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any credit chase journey governmental agency. The fund's sponsor has no legal obligation to provide financial support to the fund, and you should not expect that the sponsor will at any time.

Investments are not FDIC-insured, nor are they deposits of or guaranteed by a bank or any other entity, so they may lose value.

Investors should carefully consider investment objectives, risks, charges and expenses. This and other important information is contained in the fund prospectuses, summary prospectuses, CollegeAmerica Program Description and ABLEAmerica Program Description, which can be obtained from a financial professional and should be read carefully before investing.

The value of fixed income securities may be affected by changing interest rates and changes in credit ratings of the securities.

Visit the SEC website for the American Funds U.S. Government Money Market Fund's most recent filings.

All Capital Group trademarks mentioned are owned by The Capital Group Companies, Inc., an affiliated company or fund. All other company and product names mentioned are the property of their respective companies.

Use of this website is intended for U.S. residents only.

American Funds Distributors, Inc., member FINRA.

This content, developed by Capital Group, home of American Funds, should not be used as a primary basis for investment decisions and is not intended to serve as impartial investment or fiduciary advice.

Источник: mynewextsetup.us

How to choose between an EFT or a bank wire



CostTimingTransfer limits (daily)Best for
EFTLog In RequiredNo fee business days

Withdrawals: $,  

Deposits: $,

Most transfers
Bank wire1Log In RequiredMay incur fee from receiving bankSame business day if submitted by 4 p.m. ET$,
Transfers that require a faster processing time and larger sums


What is an electronic funds transfer (EFT)?

An electronic funds transfer (EFT) is a digital transfer of money from one account to another. An EFT can occur between accounts at the same financial institution or across institutions.

What is a bank wire?

A bank wire is an electronic message system that allows banks to communicate securely with each other. Banks may send account information, notifications, and transaction requests over bank wire. This is the fastest way to send money, as funds are typically available immediately.

Unlike EFTs, bank wires are reviewed and verified by employees at both the sending and receiving firms before they’re processed to ensure the sender has the money to complete the transfer, and that the receiving account is available to accept the money.


Choosing a bank wire vs an EFT

There are a few factors you’ll want to consider when you’re deciding whether to send money via EFT or bank wire. Primarily, you should look at when you need to send or receive the money by, how much money you need to send, and whether you’ll have to pay any fees.

Timing

EFTs in and out of Fidelity accounts are generally received within business days, though the funds may immediately be available for trading.

Electronic funds transfers (EFTs) are not processed on Saturdays, Sundays, or New York Stock Exchange and bank holidays. EFT requests entered after 4 p.m. ET will not process until the next business day.

Bank wires you submit before 4 p.m. ET are typically available the same day. If you submit your wire request after 4 p.m. ET, the money is typically available the following business day. If you're selling shares from a mutual fund to wire money, your funds are available the following business day for shares sold by 4 p.m. ET.

Fees

Fidelity doesn’t charge a fee for sending or receiving EFTs, but the receiving bank may charge a fee. Fidelity also doesn’t charge fees to process wire transfers to a bank or other recipient. If you’re transferring money to an account at another bank, however, the receiving bank may charge an incoming wire transfer fee.

Transfer limits

There are limits for the amount of money you can send via EFT or bank wire in a given day, and some transactions have minimum dollar amounts.

There is no limit to the number of EFTs you can submit per business day. The minimum amount for each EFT is $10, and the maximum amount per day is $, for withdrawals, and $, for deposits.

If you need to deposit more than $, per day, or withdraw more than $, per day, you can call Customer Service at to hear your options for the daily limit for electronic funds transfer (EFT).

The transfer limit for bank wires is $, per day, per client. The minimum amount for each bank wire is $ Like EFTs, if you need to wire more than $, in one business day, you can call our customer service line for assistance.

Eligibility

All Fidelity brokerage and mutual fund accounts are eligible for electronic funds transfer (EFT), with the exception of Self-Employed (k) plans, Self-Directed Brokerage accounts, SIMPLE IRAs, Fidelity Retirement plans (Keogh), and non-prototype accounts. Trust, business accounts, inherited IRAs, stand-alone SMA, and Fidelity personalized portfolio accounts must establish the EFT service by completing the Electronic Funds Transfer (EFT) Authorization (PDF). Inherited IRA accounts cannot accept contributions via EFT.

Enabling your account for bank wire and EFT

Once you've decided how you want to transfer your money, you'll need to make sure your account is set up correctly for the transaction. Most financial institutions call this providing "instructions." When you link a bank accountLog In Required to your Fidelity account, you'll need to select whether you want to enable your account for bank wire or EFT. You can enable your account for both transfer types. Once you've saved your instructions, you can start a transferLog In Required.


Are there other options for transferring money?

There are several other ways you can transfer money into or out of a Fidelity account, including through paper checks and third-party payment apps like PayPal and Venmo. Fidelity accounts are currently compatible2 with PayPal, Venmo, Square, Apple Pay, Google Pay, and Samsung Pay. For more information, see our mobile payments page.

To deposit a paper check into a Fidelity account, you can upload a photo of the check to the Fidelity Mobile App, or deposit it directly at a local Fidelity investor center. You can also withdraw money from your Fidelity account and have it sent via a paper check that’s mailed to you or another recipient. If you request to have a check sent to you or someone else, the check takes about 5 to 6 business days to process before it's mailed.

For more information on depositing money into a Fidelity account, see our deposits page. For information on taking money out of a Fidelity account, see withdrawals.

Источник: mynewextsetup.us

Investor Publications

Many investors transfer their accounts from one brokerage firm to another without a hitch. If your transfer goes smoothly, count on the whole process taking two to three weeks. Transferring mutual funds from one bank to another this time frame may vary depending upon such factors as the assets involved, the types of accounts, and the institutions between which the transfer occurs.

Transfers may be delayed if:

 

  • the wrong transfer form is used;

     

  • the transfer form has been incorrectly completed;

     

  • the transfer involves a request to transferring mutual funds from one bank to another some or all of your assets;

     

  • the transfer includes a margin account;

     

  • the transfer is from one type of account into a different type of account;

     

  • a change in the account owner is made; or

     

  • the transfer involves a retirement account.

This document walks you through the transfer process and provides tips on how to avoid problems.

Use the Right Form

Use the correct form to ensure your transfer goes smoothly. Some firms allow you to use one form for all account transfers while others have different forms depending on the type of account you are transferring (for example, an IRA account or a margin account). To get the right form, call the new firm where you want to transfer your account or visit its Web site.

Review the Form Carefully

As you start filling in the transfer form, review the account statement from your old firm where your account is held. All firms require you to attach a copy of your most recent account statement to the transfer form.

The form usually asks for the name on your account, the type of account you want to transfer, account number, the firm where the account is held, and your social security or tax identification number. Be sure you provide this information exactly as it appears on your old account. For instance, if your middle name or initial appears on your old account, you may run into delays if you forget to include it. When transferring only some of the securities in your account, carefully list the securities you want to transfer on the form.

The easiest way to transfer transferring mutual funds from one bank to another account is to keep the type of accounts the same (joint account transfers to joint account; IRA to IRA) and account owner the same. You can change account type or ownership at the time of the transfer, but this may delay the transfer. You may need to provide documents proving changes to ownership, such as a marriage certificate, divorce decree, or death certificate.

If you have questions about how to complete the form, contact the new firm for help. Once completed, keep a copy of the form for your records.

Understand the Transfer Process

All transfers start and end with your new firm, but your old firm needs to take action too.

Electronic Transfers

Most account transfers between brokerage firms are made using the Automated Customer Account Transferring mutual funds from one bank to another Service (or "ACATS") system. The National Securities Clearing Corporation operates ACATS, and both the New York Stock Exchange and the National Association of Securities Dealers, Inc. require their member firms to use ACATS.

These rules require firms to complete various stages of the transfer process within a limited period of time. If the transfer is made through ACATS, and there are no problems, the transfer should take no more than six business days to complete from the time your new firm enters your form into ACATS.

During this time, your old firm compares the information you provided on the transfer form with its information. If the information matches, your old and new firms review the transferable walking the west highland way in 4 days. If the transfer includes a margin account, the new firm also examines the account to see whether the account meets the firm's margin standards. Firms may have different margin standards about how much they will lend you to trade. While the transfer is in progress, your account may be "frozen" for part of the time. If this occurs, you may be unable to trade. Check with both your old and new firms if you want to trade during the transfer process.

Under the "ACATS for Banks" program initiated by DTCC in Februarybanks may voluntarily participate in ACATS. If a bank participates in the program, then a transfer from the participating bank to a brokerage firm or vice a versa should occur in the standard ACATS time frame of six business days. If you are transferring your account to or from a bank you should ask whether the bank participates in the "ACATS for Banks" program.

Be aware that delays may occur when you transfer a retirement account. Because retirement accounts require a financial institution, such as a bank, to act as the custodian or holder of the account, you must have a custodial arrangement in place at your new financial institution before the transfer can occur. A delay may happen if you have not paid the maintenance fee to the old custodian or the new custodian does not allow a security in the retirement account to be transferred. Once everything is in place, the transfer can be made through ACATS.

Manual Transfers

Sometimes, a transfer is made manually. This occurs when your assets are with a bank, mutual fund, credit union, insurance company, or limited partnership that does not participate in ACATS. This also may occur if you request a liquidation of assets other than the standard money market fund in your account. There are no set time frames for completing a manual transfer with these financial institutions. For that reason - and the potential risk of market volatility should there be any delay - you may not want to liquidate any assets via instructions on the transfer form.

A manual transfer may also occur when you request a partial transfer of your account between brokerage firms. The rules of the NYSE and FINRA require firms to expedite or complete these requests in a reasonable amount of time, but firms have the option to make these transfers electronically through ACATS. If you are making a partial transfer, tell the new firm you would like the transfer to go through ACATS.

Monitor Your Transfer

Since both the old and new firms must act to complete the transfer, stay in touch with both of them. Make sure the new firm has received your transfer form. If you sent the form to a branch office, it may take a few days before it is received at the firm's headquarters for processing.

You may also want to ask the old firm whether it has received the transfer request. If the transfer goes through ACATS, the old firm has three business days from the time it receives the transfer form to decide if it is going to complete or reject the transfer. If the assets in an account can be transferred through ACATS, a firm can reject a transfer request only if the form has been completed incorrectly or there is a question about the ownership of the account or the number of shares. Ask the firm whether it will transfer your account or if there is a problem with your instructions. If there is a problem, ask for an explanation and how to correct it.

If the old firm takes no action on the request or a problem is not resolved within six business days, the transfer request is purged (or deleted) from ACATS. If that happens, the new firm must start over by again inputting the transfer request into ACATS.

Know Which Securities May Not Transfer

Some types of securities may not be transferred. These securities include:

 

  • securities sold exclusively by your old firm;

     

  • mutual funds or money market funds not available at the new firm;

     

  • limited partnerships that are private placements;

     

  • annuities; or

     

  • bankrupt securities.

If your request includes some of these non-transferable securities, it may take longer to complete a transfer. Your old firm is required to transfer whatever securities or assets it can through ACATS and ask you what you want to do with the others. You generally have two choices: either sell the non-transferable security and transfer the cash, or leave the security with your old firm. Sometimes, you may be able to take possession of the security itself. Taking possession of a security may pose risks, such as the security could be stolen. Also, it may not transferring mutual funds from one bank to another advisable for retirement plans.

 

Keep These Final Thoughts in Mind

Your old firm may charge you a fee for the transfer to cover administrative costs. Sometimes, the new firm will also charge a fee. These fees are typically spelled out in your account agreements transferring mutual funds from one bank to another the firms.

Expect delays in receiving dividends, interest, and proceeds from sales of securities. They often arrive at your old firm after the transfer has taken place. Your old firm is required to transfer them to you at your new firm — within ten business days of receipts — for at least six months after the account transfer is completed.

If you feel like your account has not been transferred in a timely fashion, ask to speak to the compliance director at your old or new firm. If you are not satisfied, contact the New York Stock Exchange or the FINRA, depending on where your brokerage firm is a member.

Finally, Ask Questions! A simple error could significantly delay the transfer. Be certain your old and new firms have the information they need to make the transfer happen in a timely fashion.

 

We have provided this information as a service to investors. It is neither a legal interpretation nor a statement of SEC policy. If you have questions concerning the meaning or application of a particular law or rule, please consult with an attorney who specializes in <b>transferring mutual funds from one bank to another</b> law.

Источник: mynewextsetup.us
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Transfers to or from Ally Invest accounts are processed between 8 am ET and pm ET, Monday – Friday. During transferring mutual funds from one bank to another time:

  • Transfers from Ally Bank to Ally Invest accounts take minutes
  • Transfers from Ally Invest Self-Directed to Ally Bank accounts take minutes
  • Transfers from Ally Invest Robo Portfolio to Ally Bank accounts can take up to 5 business days since we have to rebalance your portfolio
  • Regular ACAT transfers (transfers from most other outside brokers) usually take business days to show in your Ally Invest account
  • Non-ACAT transfers (transfers from outside banks, retirement companies, or mutual fund companies) may take several weeks before you receive by mail

Check your email for updates. We'll notify you when your transfer is initiated, gets placed on hold, or if it gets rejected.

Was this helpful?

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It sometimes takes 1 to 2 business days before our system displays the transfer in your account. Check your email for updates. We’ll email when your transfer is initiated, and if it gets placed on hold or rejected, we’ll email with an explanation.

Was this helpful?

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transferring mutual funds from one bank to another

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