Elective locks
Elective locks prevent Symplany from selling a holding for any reason. One common use case is a client who wants to keep an investment for sentimental reasons.
Whereas Gain limiter only prevents selling a holding for tax purposes (i.e. in a non-qualified account when it has an unrealized gain), elective locks expand that notion to not selling a holding in any type of account, for any reason.
How it works:
- Two modes:
- Manual: Existing positions can be manually locked; new funds that transfer in are not automatically locked.
- Automatic: In addition to being able to lock existing positions, newly added funds will automatically get locked. You'll receive an email notification when this occurs, allowing you to adjust as needed.
- If a fund has both Elective locks and Gain limiter enabled, the Elective lock takes precedence. The fund will not be sold even if it incurs an unrealized loss.
| Prevents selling specific holdings: | Elective locks | Gain limiter |
|---|---|---|
| With an unrealized gain | ✅ | ✅ |
| With an unrealized loss | ✅ | ❌ |
| In a non-qualified account | ✅ | ✅ |
| In a qualified account | ✅ | ❌ |
| During a withdrawal | ✅ | ❌ |
Common questions:
Q: Can I use Elective locks to hold individual equities?
A: Yes.
Q: Can I use Elective locks to keep a holding even if it is at a loss?
A: Yes.
Q: What happens if both Elective locks and Gain limiter are enabled for a particular fund?
A: As long as a position has an Elective lock, it will not be sold.