Delay in Buying Price - Funds or ETF's/Shares

kar999

Apologies if this has been answered before...

At some stage I will most likely be putting a lump sum, over and above my regular monthly contribution, into my HL S&S ISA. I’ll be “trying” to buy when the market is bottoming out. The Holy Grail is knowing when that is but that’s a question no one can answer so I’ll just have to make a judgement call on that.

If I invest in a normal fund there is a delay of 5 – 24+ hours between making a payment and the investment. The deadline with HL is payment must be received by 7am for investment at lunchtime that day. Payments after that will not be invested until lunchtime the following day. Shares and ETF’s are however bought on a real time basis but do carry a transaction cost (c. £11.95).

If the market is rising steeply I would want to “try” and not lose that days growth so maybe an index tracker ETF would be able to do this.

I would be interested in anyone’s views on this and maybe any suggestions for suitable ETF’s

Or am I just being too ambitious and/or going about this the wrong way? I’m open to criticism, good, bad or indifferent. Thanks.

mr_fishbulb

Now is a good buying opportunity, but you should make sure that anything you do buy still fits in with your investment plans.

Don't buy something just because you can purchase it instantly.

Old_Slaphead

mr_fishbulb wrote: »

Now is a good buying opportunity.

Fact or opinion ? (given the FTSE100's just closed up 3%)

mr_fishbulb

Old_Slaphead wrote: »

Fact or opinion ? (given the FTSE100's just closed up 3%)

It can always only be an opinion

I'm taking about markets relative to where they were a month ago. FTSE 100 closed under 5200 when in the past month it has been pushing close to 6000.

kar999

I'd normally top up my S&S ISA with lump sums anyway and have "free cash" available to do that so a lower market is as good an oppportunity as any.

I was just keen to see if there are good ways to catch the market if a quick rise begins. That judgement call is always difficult but the market has risen 3.16% as I type. If it goes up again tomorrow I dont want to be in a position where I'm not able to buy until midday Monday which would happen with a normal fund unless I deposit cash with HL before 7am tomorrow The only way I see it is to buy shares or ETF's during Friday.

Of course it might fall 5% tomorrow.. ..but that's the gamble.

westy22

You would need to check the fund factsheet to determine when it is priced, as not all funds are re-priced daily at 12 noon. For those that are priced at noon tomorrow, the price then will reflect this afternoon's rises and any possible rises on Friday morning.

Ark_Welder

How long do you intend to remain invested? If merely for the short term then an ETF might be more suitable. However, if you are looking at 5+ years and are expecting a rising market (overall) then the difference between a daily price and intra-day pricing should become largely insignificant. And remember that a market that rises by 5% in the morning - tempting you to buy - could fall by as much in the afternoon or the following day.

cloud_dog

kar999 wrote: »

I'd normally top up my S&S ISA with lump sums anyway and have "free cash" available to do that so a lower market is as good an oppportunity as any.

I was just keen to see if there are good ways to catch the market if a quick rise begins. That judgement call is always difficult but the market has risen 3.16% as I type. If it goes up again tomorrow I dont want to be in a position where I'm not able to buy until midday Monday which would happen with a normal fund unless I deposit cash with HL before 7am tomorrow The only way I see it is to buy shares or ETF's during Friday.

Of course it might fall 5% tomorrow.. ..but that's the gamble.

So are you sat at home constantly watching the markets with your finger over the buy button?

If you're not, then I'm not sure what the problem is. If you are timing the markets / investment then you sound more like a trader in which case funds probably aren't the best for you. If this money is for longer-term investments then investing on one day or the next won't materially affect your long-term outcome.

I do both...... SelfTrade / X-O for trading/investing and HL for funds (SIPP).

kar999

cloud_dog wrote: »

So are you sat at home constantly watching the markets with your finger over the buy button?

If you're not, then I'm not sure what the problem is.....

I do both...... SelfTrade / X-O for trading/investing and HL for funds (SIPP). (SIPP).

I'm also contemplating doing both....

My main investments S&S ISA is there for the long term so I'm happy to continue with pound cost averaging with my regular contibutions into funds. So as Ark welder says the timing wont make that much difference.

I am however willing to put my £5-6k top up this year into a higher risk category by buying and selling shorter term where timing may make some major difference.