I understand stocks and load fees but the trading times/prices on mutual funds I don’t quite understand. I know your purchase goes through after hours, but do you get the price that it is listed as when you put in your order or the price that it goes up to after hours? For example if the fund is listed at a share now (what it traded at last night?) and I put in an order before the market closes. Tomorrow the price shows a share, so did I buy at or ? Any advice appreciated. Thanks
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When does the price on mutual funds change?
bkwrm006 8:55 am on August 11, 2010
Mutual fund prices change at the end of each trading day. You will either purchase or sell your shares at the closing price for that day.
From your example, you would be purchasing at $60.
keersud p 8:55 am on August 11, 2010
I think it is same as stock..Investing in mutual fund is really a good idea.. Before investing learn more basics about it.. If you are first time investor means just go to the broker office & get the guide from them.Just take a look at the below link to get free information regarding mutual fund.
Anon Y 8:55 am on August 11, 2010
Generally funds are valued daily based on values of securities as published in a specific publication. All of the rules for valuation should appear in the fund’s perspectus. The prespectus will also spell out when your money will be credited and valued and any sales charges that the fund may take. Every fund is different so you have to read the perspectus for each fund since it is in effect is the contract of agreement between you and the particular fund and those are the rules everyone in the fund honors.
Suzy 8:55 am on August 11, 2010
Unless your brokerage delays the purchase, it should be the price at the time you placed your order.
jeff410 8:55 am on August 11, 2010
A mutual fund is purchased on the basis of its Net Asset Value, which is the value of the fund’s portfolio of securities, minus the liabilities of the fund. The net asset value is quoted each day, around 6:30 EST. If you place an order before the market closes, at 4:00 EST then the purchase goes through the next day. at the current day’s quoted NAV. If you placed an order with the fund after trading hours it would go through at the next day’s NAV, on the following day.
The Mutual Fund Investor 8:55 am on August 11, 2010
Hello,
Mutual funds are priced on a daily basis. If you place your trade prior to a cut off point as stipulated in a mutual fund’s prospectus you normally get the closing price of that day. Mutual fund families may have different cut off times for same day price execution. Some companies will allow you to place trades almost until the market closes and still get the price for the close of that day.
Mutual funds can be purchased after hours but the price you get will be the closing price for the next business day. The price of a mutual fund does not change in the after hours market
Michael A. Weiss, CFA
The Editor
The Mutual Fund Investor
http://www.mutualfundinvestor.net
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