How long does a Fund buy/sell take to execute?

snuffysurfs

Does anyone know how long it takes fund supermarkets to execute an online buy or sell on funds held in their accounts?

I know that for online stocks it's generally done the same day but I seem to recall that it took 3 or 4 days the last time I did it?!

I have an account with Hargreaves Lansdown, but can't find out anywhere how long it should take.

Thanks,
Tim

slinga

Let mew tell you a story.

A few years ago I decided to switch some funds with Fidelity.
I filled in the switch form ,walked 200m to the post box and just after the letter to Fidelity left my hand to drop into the post box I realised I'd made a mistake with my decision.
I walked back home and immediately phoned Fidelity to tell them what I'd done and ask them to cancel the transaction.
This was a good 5 hours before the post box was emptied lrt alone the letter being received by Fidelity.

Fidelity told me they would sort it and leave a note with the deal makers to the effect that the deal was to be cancelled.
Phobic guy that I was I decided to email Fidelity to confirm my cancelling of the deal.I emailed the dealing house direct having got their address from the phone call.
I phoned Fidelity again spoke to a different person who confirmed there was notes to the dealers and my email was also received.
Anyway I didn't sleep well and the next day wondered if I should phone Fidelity again to see that things were being done.
Well I held off until about 12-30pm and had to phone them.

I was told the deal had been made at noon, the usual time for things to be done.
What to do too late.

That deal will cost me about 1800 quid when I fill in my tax forms in a month or so. I exceeded the CGT limit with that deal.

My fault for not getting things right I know.

But I was so miffed with Fidelity that I've switched all my UT's to another provider and will do no more business direct with Fidelity.

Again I realise it was my error but Fidelity did reassure me they would right my error and had the time to do so. They failed.

Again it was my initial error.

kar999

See here for my info regarding buying in HL. I don't know about selling but I wouldn't be suprised if the same deadline applies. Basically a delay of min 5 hours- max 24+

https://forums.moneysavingexpert.com/discussion/3417067

StevieJ

H&L are not too bad but those insurers :eek: , last time I made a change with L&G it seemed to take for ever, I even phoned them up to ask what was going on, the reply 'oh it is waiting to be authorised'

le_loup

Selling with H-L is done same day if you put your order in before 8:00 am. After that time it's next day. There is usually around five days for the settlement day then three days for a BACS to your account.
If you want to switch funds, that's normally same day.

sorcerer

I try to make sure I put my buy/sell order on the previous day.night, if I want it to trade the next day. General trades are done at the next valuation point, this is normally 12 noon.

jamesd

Depends on the fund. Take the Scottish Widows Latin America fund. That has a valuation point at 8AM UK time. Their traders start work at 9AM. That makes it impossible to issue same day dealing instructions to take effect before the market opens. HL themselves won't process instructions generated in the middle of the day, check with HL for specifics.

The net effect? Place an order on Thursday after 8AM and it may not be executed until the Monday 8AM valuation point. That could keep you in the Latin American market for two whole trading days after you gave the instruction. Not good if you were trying to get out of it.

Other funds can be worse. Some don't have daily dealing, possibly dealing once a week only.

Even for UK funds there are differences. Most UK FTSE trackers will have noon as the valuation point but Vanguard uses close of trading.

If you want rapid responsiveness ETFs or investment trusts are the way to go. For funds you'll usually get once day dealing but you have to be careful about when the times are.

Totton

I find that HL trade funds very quickly usually, most are done on the same day or by the following day with just the odd one taking 2 or 3 days. for example my Ecclesiastical fund trades take a day or so longer than Artemis etc. This is a lot better than not so long ago when trades where taking 10 days or thereabouts when I was with a different supermarket.

moneylover

Totton wrote: »

I find that HL trade funds very quickly usually, most are done on the same day or by the following day with just the odd one taking 2 or 3 days. for example my Ecclesiastical fund trades take a day or so longer than Artemis etc. This is a lot better than not so long ago when trades where taking 10 days or thereabouts when I was with a different supermarket.

So are you saying that for the most commonly traded funds you could do an online instruction at, say 9am and it will buy or sell at 12noon that day?

kar999

No. HL told me that if you want to buy funds at 12 noon they would need the money and instruction ideally by 7am that morning (8am was the absolute drop dead time). After that time, funds would not be bought until 12 noon the next day, some 28 hours later. ETF's and shares can however be bought on a real time basis.

moneylover

kar999 wrote: »

No. HL told me that if you want to buy funds at 12 noon they would need the money and instruction ideally by 7am that morning (8am was the absolute drop dead time). After that time, funds would not be bought until 12 noon the next day, some 28 hours later. ETF's and shares can however be bought on a real time basis.

So can you do this online early morning or do you have to phone?