Mutual Funds FAQs

Q. Which mutual funds can I buy from Scottrade?

A. We offer a growing list of more than 14,000 individual funds. To view which fund families we offer, search from a list of all fund families or find the fund alphabetically in the A-Z search at the Mutual Fund Screener. If it is a new fund, contact your local Scottrade® branch office for information.

Q. How can I get a mutual fund prospectus?

A. Prospectuses containing complete information including management fees, charges and expenses, can be ordered either online or by contacting your local Scottrade® branch office. Note: Not all fund companies offered through Scottrade offer a prospectus for online viewing and downloading. You may also contact a fund company directly for their prospectus. Please read the prospectus carefully before investing.

Q. When can I use the proceeds from the sale of my mutual fund to purchase other securities?

A. Proceeds from the sale of mutual funds are usually available to reinvest on the settlement day of the mutual fund trade. Typically this is the trade date plus one business day, although settlement periods vary by fund and are subject to change without notice.

Q. What is the minimum initial and subsequent purchase requirement for mutual funds?

A. Mutual fund purchase and exchange orders at Scottrade must be the greater of $100 or the fund's minimum initial investment amount. You must have sufficient settled funds in the account to meet the applicable minimum, cover transaction fees and other associated fees prior to placing the trade. Fund minimum initial investment amounts vary. For more details, view the specific fund details available on the Quotes & Research tab, or call your local Scottrade® office.

Q. Is there a cut-off time for mutual fund orders to be submitted?

A. Currently, most orders must be received before 4:00:00 p.m. ET. There can be exceptions, e.g. trades placed in the ProFunds, CGM, Sequoia and Leuthold families of funds, have a 3 p.m. ET cutoff. Orders received after the cutoff time are executed at the next business day's closing price. When the market closes early, Scottrade currently haltst ProFunds, CGM, Sequoia and Leuthold families of funds transactions one hour earlier. For example, if the market were to close at 1 p.m. ET, Scottrade would halt ProFunds, CGM, Sequoia and Leuthold families of funds transactions at noon ET.

Q. How does pricing work when buying or selling a mutual fund?

A. Trades are calculated from the net asset value. If you are buying a front-end load fund, a sales charge may be added to the NAV, or public offering price, at the time of purchase. The load fund purchases result in the trade being executed at the public offering priceplus applicable sales charge. Redemptions of some load funds may have a contingent deferred sales charge, or back-end load, deducted from the proceeds. Many funds charge early redemption fees, which may be assessed in addition to sales charges, to discourage market timing. Also, some funds will close accounts or restrict future purchases or exchanges due to excessive trading. Please read each fund's prospectus carefully before investing.

Q. How can I change, modify or cancel a mutual fund order?

A. Call your Scottrade® broker to request to cancel or modify a mutual fund trade before the trading cutoff on the day you place the trade (with the exception of the ProFunds, CGM, Sequoia and Leuthold families of funds, which have a cutoff of 3 p.m. ET). Cancellations are subject to the approval of the fund company and therefore cannot be guaranteed. When a cancellation request is received and placed by Scottrade, the order status will reflect Cancel Pending on both the original trade and the cancel request. If the fund company accepts the cancel, the order status will be updated to Cancel Accepted. If the fund company rejects the cancel, the order status will be updated to Cancel Rejected.

Q. How can I place a mutual fund order when I am away from my computer?

A. For those times when you are away from your computer, you may contact your local Scottrade® branch office. Mutual fund orders placed by a Scottrade® Investment Consultant may be subject to a $25 handling fee.

Q. How will I know when my mutual fund order has executed?

A. Your order will usually be confirmed the morning of the next business day, hoever; it can take up to 48 hours for the mutual fund company to confirm your transaction. You may check your order status by viewing the 'Order Status' link on the Scottrade® mutual fund order entry page.

Q. Can I participate in a dollar cost averaging program at Scottrade?

A. Yes. Scottrade offers systematic purchases and redemptions. You choose the month, date and dollar amount to be transacted. The dollar amount must meet the minimum subsequent investment amount set by the fund, which can be obtained fromthe fund details page under the Quotes & Research tab. Systematic redemptions may be transacted by using either dollars or shares. Currently, redemptions using shares may not be transacted for fewer than five shares and redemptions using dollars may not be transacted for less than $100. A $2 fee is incurred for each systematic purchase of a no-load fund not currently participating in the no-transaction fee program. You can request a Mutual Fund Systematic Trade Authorization Form by downloading it from the Forms Center or by contacting your local Scottrade® branch office.

Q. Is there a minimum time frame needed when setting up a systematic transaction?

A. Yes. Please allow 10 days from the time your broker receives the form for your systematic purchase or redemption to be initiated. A shorter period of time may result in your first transaction date being missed.

Q. What happens if I do not have cash available in my account at the time of the systematic transaction?

A. You will be required to satisfy any debit that is the result of a systematic transaction.

Q. What happens if I have a systematic redemption and there are not enough shares in my account?

A. If you do not have shares that are fully settled in your account, the trade will be rejected by the mutual fund company.

Q. Will my systematic transaction take place if the day that I specify falls on a weekend or a holiday?

A. Yes. The transaction will occur the last market day previous to the date specified.

Q. How can I discontinue the systematic purchase or redemption in my account?

A. Please send a letter of instruction or Systematic Transaction Cancellation form, available from the Forms Center, to your local branch, stating your request to discontinue your systematic transaction. Allow 10 days from the time your local branch receives your letter for the transaction to be discontinued. A shorter time frame may result in an unwanted transaction for the next predetermined cycle.

Q. Will there be a transaction charge for my systematic transaction?

A. Scottrade currently does not charge a transaction fee for a systematic trade of no-load mutual funds currently participating in the no-transaction fee program or load funds. Systematic purchases of no-load funds NOT participating in the no-transaction fee program are charged a $2 fee.

Q. Can I set up a systematic purchase program from my bank account?

A. No. Scottrade currently only offers systematic purchases and redemptions from your Scottrade® brokerage account.

Q. If I purchased a fund with a front-end load (A share class) and feel that I was due a reduced sales charge, what should I do?

A. Contact your local Scottrade® office immediately for a Mutual Fund Breakpoint Claim Form or download it from the Forms Center. Upon receipt of your completed form, the information will be reviewed to determine whether you qualify for a refund. If you qualify for a refund, Scottrade will adjust the purchase to reflect the reduced breakpoint. Please contact your local branch with any questions.

Q. How can I change my dividend and capital gains options after my initial purchase?

A. Changes may be made via one of the following methods:

METHOD 1

  1. Click the Trade tab.
  2. In the menu on the left, click Mutual Funds.
  3. Locate Update Your Earnings Strategy on the right.
  4. Click on View or Change your Earnings Strategy to view all mutual fund positions and make any desired changes to the strategy.

METHOD 2

  1. Click on the My Account tab.
  2. In the menu on the left, click Positions.
  3. Locate the fund you wish to review or update.
  4. Hover your cursor over the fund symbol.
  5. A window will open that will allow you to change or view your Earnings Strategy.

Investors should consider the investment objectives, risks, charges and expenses of a mutual fund carefully before investing. A prospectus contains this and other information about the fund and is available through www.scottrade.com or through a Scottrade® branch office. The prospectus should be read carefully before investing.

No transaction fee (NTF) funds and Load Waived funds are subject to the terms and conditions of the program. Scottrade is compensated by the funds participating in these programs through recordkeeping, shareholder, or SEC 12b-1 fees.