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Transaction time - OEIC

Hey guys,
As my first jump into investing I used some of the money in my sons Fidelity Jisa, since no trading cost on funds etc if I decided to switch.
I placed an order on Friday afternoon, admittedly after half four, for about 8 funds. Only one, the Fidelity one, has been purchased, the others are pending transactions.
I'm not alarmed as it seems it may take a little while according to their docs, and it's small amounts, however, it was quite surprising.

1. Is this the case with most platforms?
2. For a more volatile fund what does this mean for the price you'll pay?
3. Where technically is the money during this period? Presumably in a holding account at Fidelity? 
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Comments

  • csgohan4
    csgohan4 Posts: 10,600 Forumite
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    I experienced this with EQI, sometimes took them a week to process, Funds, unlike shares are not always bought in Realtime. The fund manager may wait a short while to do them in bulk to make it more cost effective for them. 


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  • Alexland
    Alexland Posts: 9,804 Forumite
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    edited 19 January 2021 at 10:47AM
    Perfectly normal when trading OEICs as there may be a delay in submitting the batch of orders to the fund manager and then the fund will have a next valuation point after which the fund manager will allocate new units and send the number of units back to the platform to allocate into your account. Similar when selling you don't know how much you will get back as it is based on a forward valuation point. The money is safe with the platform but they will have stopped you from using it to place other orders.
    If you want certainly on unit prices you would need to use live exchange traded investments such as ETFs or ITs but Fidelity charge £10 for such trades.
  • ChilliBob
    ChilliBob Posts: 2,201 Forumite
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    Cheers, that's pretty much what I thought. Yes ETFs are something I'm looking into for my 'main' investing either with my ISA (100k or so) or my GIA (considerably larger when I get round to it!)

    It did seem some what surprising when practically everything is really quick these days buy ho hum! - It's these sort of reasons why I wanted to use this JISA as a playground really before jumping in with larger sums.

    Cheers both
  • Albermarle
    Albermarle Posts: 24,596 Forumite
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    Normally investing in open ended funds is a long term project , so any small delays /price differences when you buy and sell are very unlikely to have any material effect in the long term .
  • ChilliBob
    ChilliBob Posts: 2,201 Forumite
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    Normally investing in open ended funds is a long term project , so any small delays /price differences when you buy and sell are very unlikely to have any material effect in the long term .
    Makes sense. I guess I was just thinking if you were investing in something a bit more niche and with a larger amount. However, as someone who's looking at far from niche stuff it's not something I should concern myself with
  • Alexland
    Alexland Posts: 9,804 Forumite
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    edited 19 January 2021 at 10:55AM
    We use ETFs in some of our larger accounts where the occasional trade costs are less than the benefit of capped fees. Still no FSCS protection.
    Often OEIC trades are quicker when the fund manager is also the platform and I have even seen the occasional order get processed at the previous valuation point in error.
    I wouldn't suggest using an open ended fund to invest in anything niche as there can be liquidity issues.
  • ChilliBob
    ChilliBob Posts: 2,201 Forumite
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    Thanks, that makes a lot of sense - I guess that's why there's soooo many ETFs as per the recent Moneyvator blog, going more nice than you'd probably want, or should go!
    Yeah the Fidelity one was quick I guess since it was after London closing on Friday when I placed the order and it came on some time yesterday. -0.1% down on my first investment! - No disaster but would have been a good omen if the first move was green! 
  • Hi,
    read this, from Fidelity.
  • Alexland
    Alexland Posts: 9,804 Forumite
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    Sometimes that loss is because the platform hasn't yet updated to the latest price your units were allocated at, some funds are dual priced with a higher buy than sell price and on single priced funds there can be a small initial cost so the existing fund holders are not at any disadvantage for the underlying costs in growing and shrinking the fund assets as a result of your order.
  • ChilliBob
    ChilliBob Posts: 2,201 Forumite
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    Cheers dude, yeah I read that on Friday, hence not being too concerned, I just wanted to know if, as I suspected, this was par for the course for these platforms, which it certainly seems it is :) 
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