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Fund purchase turn around time; outside of your primary vendor ???

catch22catch22
edited September 2012 in Fund Discussions
Morn'in coffee,

Our using Fidelity as our primary account vendor, of course; finds that a sell of one fund to purchase another Fidelity fund will be a completed "in-house" transaction at 4pm pricing for that business day.
Knowing that a completed transaction turn around time will not be the same when buying an "outside fund" via Fidelity; as there will be the processing time for the other vendor, too; might you offer your experience with a similar circumstance?
NOTE: These are electronic transactions (no via the mail); and the Fidelity posting of a purchase indicating the buy price of the "outside fund", generally indicates 2 or 3 business days. This question is regarding open-end mutual funds and does not include etf's and related that could also be processed through a fund brokerage account.
I suspect this is a normal transaction period for those using other vendor platforms, too.
Thank you in advance for your report.
Regards,

Catch

Comments

  • scott
    If I buy a fund, the purchase is usually completed by that evening or, the latest, the next morning. Only on a couple of occasions has a fund taken two days.
  • Old_JoeOld_Joe
    edited September 2012
    Purchases through Schwab at end of trading day. Haven't sold anything there yet, but I suspect the same. Perhaps they keep some in-house inventory of outside funds?
  • fundalarmfundalarm
    edited September 2012
    i confirm, Mark. your cash from the sale will not be available for your purchase for the same NAV day - it takes one day extra (at least) most of the time. Interestingly, my 401K allows for the same day transaction, while my husband's doesn't. We are solving a similar situation for an institutional investor at work transferring $80mill from one fund company to another -- still there is a day lag or we need to use the outside cash/leverage.
  • InvestorInvestor
    Catch: Typically you have 3 day settlement for non-Fidelity funds for swap.

    However, instead of a fund swap, if you just sell the fund you will get credit next day and you can purchase another outside fund.
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