I just wanted to write a quick post about transaction cut-off times and settlement periods. It seems that this topic isn't often discussed in blog posts and articles about investment funds. I think there are two reasons for this:
1. It's just not sexy. People would rather read about gains and losses than waiting times.
2. Mutual funds and UITFs aren't really suitable for day-trading. Investors who want to be able to invest and redeem quickly are better off buying stocks or ETF shares directly. Thus timing is usually not that important.
Still, it's important to know these details about your investments. You might need to redeem funds quickly, or have cash available by a certain date. Issuing a redemption order after the cut-off time means having the transaction processed the next banking day with a corresponding delay to the actual settlement date (the date funds are credited to your bank account).
Go to your fund's website or contact your agent to get the information. Then make a note of it and keep it (electronically or physically) wherever you keep your investment records. It's a small tip that may pay off in the future.