Unlike shares, funds are usually traded once per day.
Each fund has a valuation point, normally at European afternoon each working day. At this time the fund Manager will calculate the value per unit based on the value of the underlying investments. This is the price at which units are bought and sold. And reflects accurate value of underlying investments at the time of calculation.
Requesting a trade means the order is held until the next valuation point.
Therefore, an investor will not know the price at which the trade is executed as it will be determined in the future - based on the value of the underlying assets in the fund at the next valuation point i.e. on a forward basis.
All the funds offered by Saxo can be traded daily, however when investing into funds the time horizon suggested is usually of a greater investment horizon.
Funds are traded directly with the fund manager.
The fund manager will create or redeem units based on the daily transactions within the fund. Therefore, the number of units in circulation will fluctuate day to day.
Investors will receive fractional units as allocation based on the valuation of the underlying assets.
Investors cannot cancel an order.
