Selling shares in a fund - how does it work?

sh856531

Hi guys,

I've been saving into Invesco's PErpetual High Income fund for a while now and have never had cause to convert it back to cash. Now I want to diversify a little more and so was thinking about selling some of the shares I have in that fund.

Can some one please tell me how long this takes? Is it something that will occur very quickly - say within a day? Or are there only set days each month where buys/sells occur? That might seem like a silly question but I seem to remember that brokers sometimes only buy or sell once a month to minimise trading charges or something?

Many thanks

S

Lokolo

Who do you hold the funds with? A fund supermarket or with Invesco directly?

And they aren't called shares, they're called units.

sh856531

Lokolo wrote: »

Who do you hold the funds with? A fund supermarket or with Invesco directly?

And they aren't called shares, they're called units.

I hold them with Hargreaves Landsdown(?)

Thanks

RayWolfe

H-L can sell units for you as well as buy. They usually get sold the day after they receive your instructions or the same day if you instruct before 8 in the morning.

Richard_DandR

Lokolo wrote: »

Who do you hold the funds with? A fund supermarket or with Invesco directly?

And they aren't called shares, they're called units.

They are shares as High Income is a sub fund of an ICVC.

Aegis

sh856531 wrote: »

Hi guys,

I've been saving into Invesco's PErpetual High Income fund for a while now and have never had cause to convert it back to cash. Now I want to diversify a little more and so was thinking about selling some of the shares I have in that fund.

Can some one please tell me how long this takes? Is it something that will occur very quickly - say within a day? Or are there only set days each month where buys/sells occur? That might seem like a silly question but I seem to remember that brokers sometimes only buy or sell once a month to minimise trading charges or something?

Many thanks

S

You can request a sell switch through Hargreaves Lansdown. This way they will sell the fund for you and will immediately purchase units or shares in other securities for you without requiring multiple sets of instructions. This is also a sneaky way to get fewer than the £500/£1000 minimum level for each fund: there is no minimum requirement for a switch instruction.

Lokolo: technically units in an OEIC are shares because it's an investment company rather than units of a trust arrangement. However, units are more commonly used to describe them because shares (as the term is usually used) typically trade above or below net asset value and can be bought or sold at any time while the markets are open.

jamesd

HL will usually sell the next day after noon (usually the pricing point for the fund) and buy the same day. Sometimes it'll take a day longer, presumably due to fund manager delays. For weekend deals I tend to see them not being executed until the Tuedsay.