Q........
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Hi Tom,
I have been with Janus ( Twenty Fund ) since last spring and have been having a problem getting an acurate transaction due to what I think they call price forewarding. During the day if the stock value signals a buy or sell and I call janus to make the transaction they either use that days closing price which is usally different from the one I was basing the buy/sell amount on or if it's later in the day they'll use the next days price. So I never really know what the transaction will be untill the next day. When I was writing down every month on paper I'd change everything the next day to reflect the actual prices. But now that I'm using a spread sheet, I have to know exactly the share amt I'll be trading. Not only does Janus know any way around this, I'm not sure they know what I'm trying to do with AIM. Are all mutual funds like this?
I hope you have time for my problems, thank you.
Mike
A........
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Hi Mike,
Unfortunately for us AIMers that's pretty much the way of the world with mutual funds. Some of Fidelity's funds have a variable trade value during the day, but almost all other mutual funds (except closed end funds) are as you described.
What I do to compensate is to delay my trade order until about noon (central time). If the market is up and I'm selling, I will call in my order. The assumption is that the market will stay up until the end of the day and that I'll get AT LEAST as good a price as I needed for my minimum trade.
I do exactly the opposite for buying. If around noon the market is down and I'm in the Buy mode, I'll place my order. This doesn't guaranty that the market will still be down at the end of the day, but the odds are greatly improved. Again, I'll get a trade that's as good or slightly better than what AIM was suggesting.
American Century is unique as far as I know. They allow you to place orders in advance. These orders remain in effect for 90 days or until they fill or are cancelled. I use their ULTRA Fund (TWCUX) as my IRA investment. There I can call in and place an order to sell $1000 at $34.05 as an example and simultaneously place an order to buy $1000 at $$28.32. Then if the price equals or goes beyond your order price, you get the close of that day. It still doesn't give you the "instant" value of your trade, you still have to wait for the final price for the day to know if you get that order filled, but at least you are sure of getting AT LEAST the price you wanted.
Hope this helps. Keep me posted on your progress.
Best regards, Tom |
