Investing

selling Mutual Funds - which date is the sale executed

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  • Mar 5th, 2020 5:54 pm
[OP]
Newbie
Feb 9, 2020
13 posts
2 upvotes

selling Mutual Funds - which date is the sale executed

I want to sell my Mutual Funds and place the money into ETFs.
Volatility these days mighty be a good opportunity for that, but timing is essential - selling on green and buying on red.
But I don't know - if i sell my Mutual Funds today, will the sale be executed today at today's price, or sometime tomorrow of even after tomorrow?
How can I be sure about the price I am locking?
I usually do Mutual Funds on the phone with TD.
Last edited by Norinyeg on Apr 9th, 2020 10:30 am, edited 1 time in total.
3 replies
Deal Addict
User avatar
Oct 14, 2015
1195 posts
870 upvotes
If your order is in before the cut off time, it will be executed at today's closing price.

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Deal Addict
User avatar
Feb 1, 2012
1365 posts
1817 upvotes
Thunder Bay, ON
If you enter a mutual fund order today before the 3:00 PM cut-off time you will get today's closing price. But the order will not fill until sometime the morning of the next trading day. That's when the funds will be in your account as cash, and available to buy something else. So one trading day delay between when you enter a sell order and when you can buy something else with the proceeds. (Edit: unless you have a margin account).

When buying or selling mutual funds you can't be sure of the price you will get, because prices are only set once per day, after trading closes. That's not like stocks or ETFs, where the order will fill immediately if there is a match between the bid price and ask price.

Sell on green and buy on red sounds like market timing. What if today is green, tomorrow is greener, and prices continue to rise without a big pullback for months or years? There are people that went to cash in 2008 and are still waiting for that good buying opportunity. Time in the market, not timing the market.
I solemnly swear, to never assume I have an inkling at which direction the market will head, and to never make any investments based on a timing strategy.
[OP]
Newbie
Feb 9, 2020
13 posts
2 upvotes
Deepwater wrote: If you enter a mutual fund order today before the 3:00 PM cut-off time you will get today's closing price. But the order will not fill until sometime the morning of the next trading day. That's when the funds will be in your account as cash, and available to buy something else. So one trading day delay between when you enter a sell order and when you can buy something else with the proceeds. (Edit: unless you have a margin account).

When buying or selling mutual funds you can't be sure of the price you will get, because prices are only set once per day, after trading closes. That's not like stocks or ETFs, where the order will fill immediately if there is a match between the bid price and ask price.

Sell on green and buy on red sounds like market timing. What if today is green, tomorrow is greener, and prices continue to rise without a big pullback for months or years? There are people that went to cash in 2008 and are still waiting for that good buying opportunity. Time in the market, not timing the market.
You are totally right, but I just need to get rid of these Mutal Funds that have a crazy management rate and move to something more palatable like ETFs.
And I believe that there might be better chances to do that when there is some volatility in the market.

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