Would I pay more if I buy a fund at its launch?

max11

Hi All.
I apologize if the question is silly!
Would I pay more if I buy a managed fund at its launch?
I know the price depends on the value, but I mean, as many people are going to buy it because of the adverts so the price is going to increase!

Would it be more convenient to wait few days (Although I know that the value of the shares can increase as well as decrease on the market)

thanks

RayWolfe

The price only increases if the underlying shares move up ... regardless of how well the fund does.
If you buy through a supermarket you may find the value drops on day one because you can buy with a discount.

sabretoothtigger

Sometimes a fund will start just as people should be selling but otherwise theres no reason for a unit trust to fall or rise in price unless the market does.

An investment trust price can move differently to their nav or underlying value. jii.l would be biggest I know of and the price variation is popularity of the fund not the shares it holds so much


If they talk about a discount it probably means they agree not to rob you with initial fees on the way in. I doubt anyone but millionaires would be getting discount on the fund assets itself and not much

purch

I know the price depends on the value, but I mean, as many people are going to buy it because of the adverts so the price is going to increase!

The price of an open ended fund (Unit Trust/OEIC) is not determined by demand, as the manager can issue as many units as required to meet demand.

A closed end fund such as an Investment Trust will have it's price determined by demand as the number of units/shares is fixed.

If you are referring to the 'revered' Mr Bolton and his China IT (along with it's exorbitant charges), then there is a very good chance that the fund will be overpriced soon after launch, so if you havn't already registered an interest to buy at £1.00, then maybe it'll be a better idea to wait a few months.