Does it make a difference when in the month a contribution is paid into a personal pension?

SilverSmith_2

Aside from the obvious "earlier is better" if unit values are rising (and vice versa!), does anyone know if there are any monthly patterns of unit value (e.g. higher at the turn of the month)?

I am thinking along the lines of peaks of demand for units (or for the underlying investments), with the obvious potential for greater value by picking a point of lower unit value.

Albermarle

SilverSmith_2 said:

Aside from the obvious "earlier is better" if unit values are rising (and vice versa!), does anyone know if there are any monthly patterns of unit value (e.g. higher at the turn of the month)?

I am thinking along the lines of peaks of demand for units (or for the underlying investments), with the obvious potential for greater value by picking a point of lower unit value.

I would not  have thought that UK monthly pension contributions would sway global financial markets, which is what effects the unit prices. 

dunstonh

Aside from the obvious "earlier is better" if unit values are rising (and vice versa!), does anyone know if there are any monthly patterns of unit value (e.g. higher at the turn of the month)?

No.  Markets do not work to such short term patterns.

I am thinking along the lines of peaks of demand for units (or for the underlying investments), with the obvious potential for greater value by picking a point of lower unit value.

You cannot know in advance what is going to be in demand and what is not.

Pat38493

SilverSmith_2 said:

Aside from the obvious "earlier is better" if unit values are rising (and vice versa!), does anyone know if there are any monthly patterns of unit value (e.g. higher at the turn of the month)?

I am thinking along the lines of peaks of demand for units (or for the underlying investments), with the obvious potential for greater value by picking a point of lower unit value.

If there was a pattern like that, all the investors would immediately jump on it and it would be negated by that, so no it doesn’t really work like that.

Grumpy_chap

The one month that it makes a difference is the March / April contribution and whether it is current or next tax year.

AlanP_2

In my experience Murphy and Sod are very active in this area.

Monthly purchases go though on the day prices are highest and any sales on the day they are lowest 

Not 100% guaranteed by and means and outside individual control typically - especially with funds when price isn't even known at point of submitting instructions.