Selling tsumitate Nisa

[tim]

I have a tsumitate NISA account and I want to sell a fund.

Searching for a specific post here in the forums but can't quite find it,
so decided to create one.

What happens if I sell a fund within a NISA account?
1.Will I able to continue to buy funds with my NISA account or would it expire?
2.Will there be something to think about before selling?
3.Will there be paperwork after selling, like tax report?

Another one is what happens if I discontinue to buy that fund
will the fund transfer to my general account (NISA account => general account)

Thanks in advance.

[zeroshiki]

When did you buy the fund?

Nothing happens if you sell, it just means you wasted that year's TNISA allowance because you didn't wait for it to complete the 20 year tax free period.

[tim]

When did you buy the fund?

This would be my first year buying the fund
and I bought a fund by mistake (High expense), and I want to sell it now

[zeroshiki]

When did you buy the fund?

This would be my first year buying the fund
and I bought a fund by mistake (High expense), and I want to sell it now

You can sell it, you don't get taxed on the capital gains and there's nothing to report to the tax authority. You lose the NISA allowance for the amount you bought the fund though so think long and hard about whether you really want to sell it.

[TokyoBoglehead]

This would be my first year buying the fund
and I bought a fund by mistake (High expense), and I want to sell it now

How expensive is the fund? It could be worth keeping it in just due to the tax-advantage.

[beanhead]

Just leave it and learn the lesson.
Unless it is a LARGE amount of money.

[zeroshiki]

I looked on Rakuten for the worst fund that qualifies for TNISA and its the Fidelity Euro Fund (tracks MSCI Europe Index) with a 1.65% management fee. That's bad but selling it and wasting the TNISA allowance is probably worse so I'd just suck it up.

[tim]

So, I spent 130,000 > gained 3.3%. I was about to cancel it, but I was it was already too late. but yeah, lesson learned