Menu
Skip to content 
Procedure of a fund liquidation
You have entered a Fund or ETF investedwhich is now being dissolved?
If so, it is important that you Steps to liquidate your investment understand.
In this blog post you will find out what happens when your Investment fund liquidated and what you are doing now Note for tax purposes need to do. More importantly, you'll also learn how to make a Identify liquidation at an early stage and thus avoid them directly with the next fund or ETF.
Let's start the post with an important question!
A Fund liquidation occurs when a Fund is closedeither because it does not have enough funds or because it is simply no longer profitable enough.
In this case, the management decides that the assets of the fund will be sold and returned to the investors.
A dissolution of a fund is actually a natural part of the economic cycle, because sometimes funds simply have a too bad performance or the Fund volume has fallen below a profitable point.
Example: An ETF with less than CHF 50 million in fund volume and a TER of 0.25 % turns over just CHF 125,000 per year. The costs for fund administration, operating costs, administration costs (e.g. for the auditor) and other costs must be covered from these revenues. The operation of the fund becomes correspondingly unattractive as the fund volume decreases.
The merger of CS and UBS in 2023 may lead you to ask what will happen to the CS index funds.
At the time of publication of the article, this is not foreseeable. Of course, the further course of the merger is decisive.
What happens to the funds of CS can be seen in the Currently not predictable. Except...
Yes! On the one hand there are Warning signals and on the other hand the Inform ETF providers in advance.
Warning signals for an ETF resolution:
A low fund volume (less than 50 million francs) should be a warning signal to you. If the fund is still young, it can of course still grow. But an older fund (a few years old) with a very low fund volume should catch your eye when selecting an ETF.
By the way, if you want to learn more about how to build a future-proof ETF portfolio, you should go to the next launch of the Finance Uni be there!
Your key to success! Discover our top recommendations from real testimonials.
It is important for you to know that a Fund liquidation does not normally happen within a few days, but rather develops can drag on over a longer period of time.
You as an investor will informed about the liquidation by the ETF provider at an early stage and can therefore still sell your shares in advance.
This saves you a lot of time, as you can then access your money directly. If necessary, you can then transfer the money directly reinvested in a comparable fund.
If your fund or ETF is liquidated, this means the Selling your shares. Since capital gains are tax-exempt in Switzerland, there is no No tax burden for you.
However, at best Price losses realisedbecause depending on the current price, your shares are in the plus or minus.
If the financial supervisors approve a Fund mergerIf there is no liquidation, there may be a merger instead of a liquidation.
In this case another, but almost identical fund takes over the assets of the fund to be dissolved.
In this case, the fund units of the old fund are exchanged for units in the new fund. A fund merger is also must be announced in good time.
Depending on the fund domicile, a further distinction is made for tax purposes in the merger of two funds, but more on this elsewhere.
A Disadvantage of a fund liquidation is that you have a Realise loss of your invested capital if the price of the fund is currently lower than on the day of purchase.
However, since you can then reinvest the capital in a new fund, it can also increase there again later.
A disadvantage would also be if you Not noticing the announcement of the ETF provider and you may have to wait several weeks for your money.
In addition there are Three pieces of good news:
If you have to leave due to a ETF Resolution received your money from the sales, you may be wondering what to do with the money.
The wide range of ETFs certainly offers you a very comparable solution where you can invest your money safely.
This time, however, pay attention to the above Warning signals and Important criteria for ETF selection.
"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
If your fund or ETF is liquidated, this will be announced in advance by the providerso that you can still react.
If you missed the announcement, the fund liquidation is probably not a tragedy for you, since you can get your money in a few weeks anyway.
If a fund is liquidated, this does not mean a total loss for you.
Alternatively, a Merger of the Fund Here you may have to be careful with regard to tax, especially with regard to the domicile of the fund.
Have you already experienced a fund liquidation? Feel free to share your questions and experiences in the comments!