How to transfer an investment fund to another manager, step by step
You already know a tax-free switch between investment funds isn't taxed (unlike selling an ETF). What raises more questions is the actual process: who do you ask, how long does it take, what can go wrong?
The key step: you ask the receiving entity, not the one you're leaving
It's the most common mistake: many people try to "cancel" the fund at their current bank first. That's not how it works. You go to the entity you want to move your money to (your new broker or manager) and tell them the origin fund and the number of units you want to transfer. That receiving entity handles the whole process from there, including notifying the origin entity.
How it works under the hood
- The receiving entity generates the transfer order (usually signed digitally) and sends it to the origin entity.
- The origin entity executes the redemption of your units.
- The money travels directly between the two managers, never through your personal checking account — this is exactly what keeps the tax authorities from treating it as a sale, so it isn't taxed.
- The receiving entity uses that money to subscribe to the new fund you chose.
How long does it take?
Regulation sets maximum timeframes: the receiving entity must forward the request to the origin one within one business day of receiving it, and the origin entity must execute the redemption starting the third business day. In practice, a transfer between different managers usually completes within up to 8 business days; within the same entity (switching funds without changing bank), it's usually much faster.
Try it yourself: use the compound interest calculator to simulate your case with your own numbers, see the charts and find your break-even point.
Things to check before transferring
- Compare before deciding: use our fund comparator to check whether the destination fund really has a lower TER or a better fit than your current one.
- Check the new broker's fees: the transfer itself usually has no cost, but it's worth knowing the receiving entity's fee structure — see our broker fee comparison.
- This only works between investment funds (or between pension plans): an ETF doesn't support this mechanism, since it trades on an exchange like a stock.