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The rules for mutual fund sales are slightly different from those for stock sales. If you want to use FIFO, you don't have to do anything. If you want to use specific share, you have to get the mutual fund company to acknowledge your instructions. So far, no difference from stock sale rules.

If you want to use one of the average cost methods (single or double category), you do not have to notify the mutual fund company. However, once you begin using an average cost method you must continue to use that method for that specific mutual fund. Many mutual funds nowadays will provide a year-end calculation assuming single-category average cost method.

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