How do mutual fund trades between two fund families price and execute?
When using the proceeds of a mutual fund sale to purchase another mutual fund in a different family, the sell side of the order is executed at the next available price. For most mutual fund orders placed before 4 p.m. ET, this price is typically the current day’s closing price. The buy side of the order gets placed after the sell side executes. Since the settlement date for the sale is one business day after the trade was entered, you receive the next business day’s price for the purchase.
