Friday, November 18, 2005

Sold My Oil Today

Well I finally sold my CIBC Energy Mutual Fund today, and made off with 14.3% profit. I purchased on July 26th at $31.792 per unit, and sold today at yesterday's closing price of $36.331 per unit.

One nice thing about mutual funds is that the price is not updated throughout the day. I built a Yahoo portfolio with the top ten holdings of this mutual fund, so I can watch it during the day. The fund has been up the last two days, but watching my portfolio this morning it seems poised for a down day. Thus by selling this morning, I sell at yesterday's price, and miss out on today's losses.

On the flip side, this aspect of mutual funds can also be a big negative. If I waited until this afternoon to put in the sell order, I would be forced to sell at the 'end-of-today' price. So if you are watching your mutual fund tank in the afternoon, and rush to sell it, you still have to suffer whatever happens all afternoon. That is why Echange Traded Funds (ETFs) are attractive; you can buy and sell at any time as if they were stocks.

By Ginsberg @ 11:08 AM [Post Link]   2 comments | EmailThis!

2 Comments:

At 12:22 PM, November 18, 2005, Anonymous Anonymous said...

The part about selling your mutual fund in the morning and getting yesterday's NAV doesn't sound right. Normally, there is a cutoff time that you can sell a mutual fund at. I think at CIBC Investor's edge it is 3:00pm. If you put your order in before 3pm, then you will get that days NAV (at the end of the day). If you put your order in after 3pm, then they will do their best to execute your order to get you end of day NAV, but you might in fact get stuck with the following days end of day NAV.

 
At 12:28 PM, November 18, 2005, Blogger Ginsberg said...

Yeah, jeez, you're totally right. I had a major seniors moment there, and it could cost me. Thanks for the correction. I sold this morning, so I will get today's end of day price. If I had waited until a certain point this afternoon, I would get tomorrow's end of day price.
Thanks again....

 

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