Mutual funds.. Why does their share price only change once per day? - Tilted Forum Project Discussion Community

Jimellow · 01-26-2006, 08:36 AM

After following a few mutual funds on a daily basis, it seems that they generally start the day with a "open price" (obviously), and close the day at a different amount. However, throughout the day, the price doesn't seem to fluctuate at all..

Is that generally how mutual funds work? IE, the closing price will be a representation of what all the individual stocks within the fund did in a day, and as a result, there will only be a single change in the share value, as indicated by the closing price?

eribrav · 01-26-2006, 04:56 PM

Yes. Also, most mutual funds (not all) can only be bought or sold at the day's closing price. Thus, there's no need for continuous calculations.

01-26-2006, 08:36 AM	#1 (permalink)
Jimellow Junkie	Mutual funds.. Why does their share price only change once per day? After following a few mutual funds on a daily basis, it seems that they generally start the day with a "open price" (obviously), and close the day at a different amount. However, throughout the day, the price doesn't seem to fluctuate at all.. Is that generally how mutual funds work? IE, the closing price will be a representation of what all the individual stocks within the fund did in a day, and as a result, there will only be a single change in the share value, as indicated by the closing price? __________________ Desperation is no excuse for lowering one's standards.

01-26-2006, 04:56 PM	#2 (permalink)
eribrav Junkie Location: upstate NY	Yes. Also, most mutual funds (not all) can only be bought or sold at the day's closing price. Thus, there's no need for continuous calculations.