Vanguard noobie.. what now?!

ranciduk

What time?!

eskbanker

ranciduk said:

What time?!

The valuation point itself is 21:00, but the updated price typically won't be published until several hours later.

ranciduk

Ok thanks

question!

if you instruct vanguard to sell some of your investment in the evening- I assume the sale will go through when trading begins the next morning 

is the price at the time you instruct to sell likely to be the same come the morning?

eskbanker

ranciduk said:

Ok thanks

question!

if you instruct vanguard to sell some of your investment in the evening- I assume the sale will go through when trading begins the next morning 

is the price at the time you instruct to sell likely to be the same come the morning?

No, you can't instruct a sale at a price known in advance - the cut-off time for dealing (at fund level) is 10:00 each trading day, but the transaction doesn't actually happen until after the next valuation point, i.e. when the price has changed.

ranciduk

To simplify- the price tonight is at 237.83

if I was to put instructions in now - to sell some units

How close is the price likely to be to that 237.83  once they put the sale through?

if it’s different, is it likely to be up or down only very slightly?

How confident can you be that you are likely to sell close to that current price of 237.83

GeoffTF

ranciduk said:

To simplify- the price tonight is at 237.83

if I was to put instructions in now - to sell some units

How close is the price likely to be to that 237.83  once they put the sale through?

if it’s different, is it likely to be up or down only very slightly?

How confident can you be that you are likely to sell close to that current price of 237.83

The theoretical answer is that the prices will quite closely follow a log-normal distribution. The spread of the distribution is determined by the volatility. I suggest that you look at recent historical prices for the fund concerned (e.g. from the Vanguard web page for the fund) and see for yourself how much the price varies from day to day. Sometimes it varies a little, sometimes a lot. Nobody knows what the price will be tomorrow. If you want to know the price when you trade, you can use ETFs rather than open ended funds.

Snapdragon

ranciduk said:

To simplify- the price tonight is at 237.83

if I was to put instructions in now - to sell some units

How close is the price likely to be to that 237.83  once they put the sale through?

if it’s different, is it likely to be up or down only very slightly?

How confident can you be that you are likely to sell close to that current price of 237.83

If you look on the price and performance tab of the life strategy 60 info sheet (via the what we offer), you'll see the recent daily closing figures which will give you an idea of the price over the past few days and hence the changes. No-one can tell you what tomorrow's change will be 

ranciduk

Ok thanks all 

tebbins

Realistically something like VLS60 won't wobble up or down by more than 1% most days, if that. It will almost never be exactly the same one day as it was the next, there's a 50:50 chance it goes each way, good luck getting to bet which way it goes when you do want to sell. But similarly you should be as concerned about the same problem on the way in as on the way out 

eskbanker

tebbins said:

Realistically something like VLS60 won't wobble up or down by more than 1% most days, if that. It will almost never be exactly the same one day as it was the next, there's a 50:50 chance it goes each way, good luck getting to bet which way it goes when you do want to sell. But similarly you should be as concerned about the same problem on the way in as on the way out 

There are undoubtedly only two realistic options (up or down) but that doesn't make it 50/50!