Sell RLSTMMF to buy CUKX on ii

20122013

If I want to 'sell' my RL STMMF value to buy another fund (CUKX), what is the process and how long will it take before I can use the funds to buy the new fund (CUKX) ?

As I am at work during trading hours, I am thinking once the fund is cleared in my account I can set the auto buy when price falls to x on the CUKX or is that a bit risky? I don' think I can place an order when the market is closed. It will be a big chunk of money I cannot afford the time to do it as a regular investment.

EthicsGradient

"auto buy when price falls to x" is a limit buy, as far as I can tell. ii does allow you to set up that type of purchase when the market is closed. There is a 'risk' that the price will never fall below the level you choose; you can choose a high level, which, if you set it overnight, might mean buying at that high level if it opens that high the next day.

ii does have an app; could you use that to place an order at the market price during a break?

Linton

https://forums.moneysavingexpert.com/discussion/6687144/sell-rlstmmf-to-by-cukx-on-ii

RLSTMMF is an OIEC, a fund where dealing is managed by the fund manager. So the sale will take 1, possibly 2, working days to be confirmed. The money can transfer up to 3 days later.

CUKX is an ETF, a fund that is traded directly on the stock market. The purchase is normally confirmed in seconds during the time the market is open. The transfer of money could happen up to 2 days later.

Whether you have to wait for the sale proceeds to be received before you can buy a new investment depends on your platform. The major ones will “prefund”, ie allow you to make a purchase as soon as the sale is confirmed but you won’t be able to withdraw the money from the account .until it has been received. I know that AJBell and II prefund but believe BestInvest don’t.

LHW99

II will tell you the timescale for the sale cash reaching the account, at the point you make a sell order on an OIEC

aroominyork

RLSTMMF settles +1. If you tell us your platform we can give better info.

masonic

https://forums.moneysavingexpert.com/discussion/comment/82172489#Comment_82172489

Platform is in the thread title - ii

aroominyork

https://forums.moneysavingexpert.com/discussion/comment/82172532#Comment_82172532

Thank you. That makes it easy. Place sell order on Day 1. The sell will show on your account first thing on Day 2, no later than 7am, with the RLSTMMF funds settled (though, as Linton said, you can place an order on ii before settlement, but that isn't an issue for you). You can then place your buy order, with a limit if you wish. You can place the order on ii when the market is closed; it will sit there until the market opens.

Bostonerimus1

It's good to understand the mechanics of selling and buying funds. But you should not be managing your investments in a way where you worry exactly when your trades will complete.

PixelPound

Since you mentioned risk, are you aware of the differences? You're moving from a money market fund that is considered cash-like to an index tracking ETF, in this case FTSE100.

As CUKX has over £3B AUM there's probably little risk in when you buy, setting a limit order for around the close price after work should mean it executes the following day (unless there's a massive price spike) as liquidity isn't an issue.

Stocks go up and down, so long as you are aware, especially if only invested in this. Long term it will go up but on any given week or so it could be be up 5% or down 5%, maybe more. It's just the nature of the beast and the price you pay for being in it.

20122013

Appreciate all the comments. May I check I am getting this : if I no longer wish to hold the RL STMMF is it better in terms of tax to buy CUKX or use cash to buy it? I am hoping to leave it for 10 + years. and use the cash is something else and sell it and buy it back as S&S ISA..

InvesterJones

https://forums.moneysavingexpert.com/discussion/comment/82175103#Comment_82175103

Not very clear what you mean by the difference between 'buy CUKX' and 'use cash to buy it'. Is the RL STMMF currently in a general investment account or inside a tax wrapper? And you want to hold CUKX within a S&S ISA, is that right? Have you made any other contributions to ISAs this year?