I have a mutual fund that is occupying 100% of my account. If I place an order to sell it, can I buy another mutual fund the next day? In other words, are there some days that I have to wait before the trade is settled and my capital is released for purchasing a mutual fund again? In general, how long do I have to wait? Thanks.
Yes, you can buy the next day. You can also switch from one fund to another the same day. Your fund, fund family, or broker might add penalties or other restrictions for frequent transactions.
Be careful of the wash sale rule if you are attempting to harvest any losses for tax benefits, by repurchasing a substantially-similar replacement fund. Speak with your CPA on that bit.
30 days for the same fund or you may get hit with a round trip violation (may be retirement fund rule).
Doubt that's an issue... unless you're changing from one fund which describes itself as an index fund (say, SPX) for another fund within the same family which also describes itself as the same index fund. But then what's the benefit in making such an exchange, so why would you? Bottom Line.... you can exchange funds as often as you're allowed by the fund family's policies with no concerns about wash sales... unless you buy back in to the same fund on which you want to claim a loss within the wash sale window. No trader should ever be hassled by wash sales... too easy to avoid. My VIEW on this is that the wash sale rules are stupid and should be rescinded. They are a paperwork hassle with virtually zero net financial consequence. All they do is perhaps shift tax gains/losses from one year to another. Overall, ZILCH for almost everybody besides being easily avoided!