Difference between mutual fund and brokerage

Unknown
Unknown Member
edited October 2018 in Investing (Mac)
I have several mutual funds, most of which are defined as "Brokerage" type. I created  a new one defined as Trust (the fund is in my revocable trust) with "Single Mutual fund" enabled. When I sold some shares in the "Mutual fund" and downloaded the Sell transaction, it shows the dollar Amount, but the Balance is zero. When I sell shares in a "Brokerage", it shows the dollar amount and that amount gets added to the Balance. The Mutual fund transaction in real life transferred the amount into my Checking account. But when I try to edit the Sell txn to add Transfer info, it doesn't allow updating the Transfer field. When I try to add a Payment txn to the Mutual fund to show the transfer to the Checking account, it automagically saves that Payment as a Buy for $0.00, and gives me a popup (attached). I guess I can edit the Mutual fund account to change it to a Brokerage, but I'd like to understand what the Single Mutual Fund account attribute is and why it differs from a Brokerage type. Can't find any explanation in Help.

Comments

  • UKR
    UKR SuperUser ✭✭✭✭✭
    edited September 2018
    "Single mutual fund" type accounts are somewhat restricted in what you can do with them, as the popup message indicates. I recommend you turn off single mutual fund so that the account acts like all the other accounts that you have.
  • Unknown
    Unknown Member
    edited October 2018
    I realize that there is a difference, but what is the reasoning behind the difference?
  • Unknown
    Unknown Member
    edited September 2018
    kenw said:

    I realize that there is a difference, but what is the reasoning behind the difference?

    "single mutual fund account" is just like it sounds.  You can only have one fund per account, and that includes cash.  It trades "flexibility" for "convenience" provide that account is actually setup to just hold one security.  Sometimes some brokers do that.

    If you have a regular account, since you can have many securities, and cash you have to specify in the transaction what security you are dealing with.

    If you are using a single mutual fund account there can only be one security, therefore it doesn't have to be specified.  So for instance if you transfer $1000 into it Quicken changes the transfer into a  buy of $1000 worth of that one security.
  • Unknown
    Unknown Member
    edited September 2018
    kenw said:

    I realize that there is a difference, but what is the reasoning behind the difference?

    I see. Thank you. I'm surprised that Quicken developers wanted to spend any time on that, with all the other requests they have.