selling funds in iWeb

slapPCM

It's a general question, not saying I am gonna panic sell now....

It takes time (a few days) to buy funds, I assume it take time to sell as well?
Let's say if I sell today, will it be sold at today's price? Or at the price on the day when the sell goes through?

Thanks for the help!

Linton

Fund (as opposed to ETFs, ITs) sales and buys are only priced by the fund manager once a day, typically around 1pm though Vanguard I think are 9pm.  Add in delays at both the platform and the fund manager your request is normally processed a day or two after you submit it.  It is the price as on the day of processing which is used. The cash from a sale may not reach your account for a further day or two.

slapPCM

Thanks Linton! answered my question

Albermarle

Funds ( OEICs) are for long term investing and not set up for dipping in and out of the market in the short term .

Eco_Miser

Albermarle said:

Funds ( OEICs) are for long term investing and not set up for dipping in and out of the market in the short term .

True, but you still have this delay and unknown price when you decide to sell, whether to take an income or because your objectives have changed.

bowlhead99

Eco_Miser said:

Albermarle said:

Funds ( OEICs) are for long term investing and not set up for dipping in and out of the market in the short term .

True, but you still have this delay and unknown price when you decide to sell, whether to take an income or because your objectives have changed.

Yes, but as a long term investment you are presumably not aiming to 'cash out' at a hyper specific price. So if you need money, you need money, and will place an order to sell to get whatever money you need.

In other words, whether you need money to 'take an income' or because you now need to invest all or a portion of the money into another product - you need money and will take it (or a portion of it) from the OEIC. The fact that you'll get a final exit price calculated tonight or tomorrow rather than right this split second, is not really going to obstruct that objective.

talexuser

For instant sell look for an Investment Trust with the same allocation as the fund you fancy, and recognise the differences that can affect performance such as gearing or premium/discount.

slapPCM

You guys guessed right, I am planning to change funds, i.e. lower cost same/similar diversification....

Now the question is, should I cut loss (not deep) and switch, or wait out and switch? Old funds and new ones should perform quite similar...

I think I should wait out.....

slapPCM

talexuser said:

and recognise the differences that can affect performance such as gearing or premium/discount.

can you explain please?

NottinghamKnight

Gearing is when the manager borrows money to invest on the basis they can increase returns, which may or may not be the case and increases risk. Premium and discounts exist due to differences between the value of assets and the price of the shares. Popular investment trusts can trade at a premium, ie the total of the share prices exceed that of the value of the assets they hold, similarly they can also be at a discount. You might think that this would narrow but discounts and premiums can often exist for long periods, and can increase or decrease over time.

slapPCM

how do you spot Gearing behavior?

And How do you know "the value of assets"?