Personal Finance

e-series redemption question

  • Last Updated:
  • Nov 11th, 2010 9:42 pm
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Member
Nov 18, 2006
271 posts
3 upvotes

e-series redemption question

Hello,

I tried doing a search, but not finding what i'm looking for..so here it goes.

On the TD site, it notes:
"** An early redemption fee may apply if this Fund is redeemed or transferred within 30 days of purchase. (90 days for certain e-Series units). Please see the Fund’s Prospectus for details."

Just want to know how the 90 days is calculated.

Is it - 90 days from the last purchase?

Probably easier if I provide an example

Jan 1 2010..purchased 10,000
Feb 1 2010..purchased 20,000

I want to sell 10,000. When can I do it without facing the penalty. Apr 1, 2010 or May 1, 2010. ?? Would TD consider the 10K i'm trying to sell..is from the first purchase or the 2nd purchase?

I'm just concerned because I have auto deposit bi-weekly into the account. I want to make sure that whenever I need to sell..I don't have stop the auto-deposit and then wait for another 90 days before I can touch the money.


thx!
3 replies
Banned
User avatar
Feb 15, 2008
26318 posts
3242 upvotes
Calgary
Its a FIFO queue. First units bought, are the first units sold, hence, if that first batch wasn't sold in the first 90 days, then it would be exempt from redemption fees.
Deal Addict
User avatar
Sep 26, 2007
3960 posts
146 upvotes
SC
i can confirm it's fifo, though i had the same question when i was going to sell because i had set up a ppp.

i had to cancel the ppp then sold all my units. my weekly amounts got hit with early redemption.
mind you that if you traded between mutual funds (rebalanced) that would in effect reset the time on some of your units.
Deal Addict
User avatar
Oct 5, 2003
3922 posts
305 upvotes
xlfe wrote: i can confirm it's fifo, though i had the same question when i was going to sell because i had set up a ppp.

i had to cancel the ppp then sold all my units. my weekly amounts got hit with early redemption.
mind you that if you traded between mutual funds (rebalanced) that would in effect reset the time on some of your units.

Is it possible to trade between e-series funds with TD waterhouse discount brokerage? If so, how?

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