When you invest in or redeem a fund, you don't know the exact price at the moment you place the order. This is normal, and it's because funds use something called forward pricing. Here's what that means.
What is forward pricing?
Funds are priced once per day, not continuously like stocks. Forward pricing means your order is filled at the fund's NAVPU (daily unit price) that is finalised after you place the order, not the last published price you can see at the time. So you place the order first, and the exact price is confirmed afterward.
How does the daily cut-off work?
Each fund has a daily cut-off time on business days:
- Place your order before the cut-off on a business day, and it uses that day's NAVPU.
- Place it after the cut-off, or on a weekend or holiday, and it uses the next business day's NAVPU.
Why don't I see the exact price first?
The day's NAVPU can only be calculated after the markets the fund invests in have closed and its holdings have been valued. Since that happens after the cut-off, the precise price isn't available at the moment you confirm. The published NAVPU you see is the most recent finalised one, which serves as a close guide.
Good to know
This applies to both investing and redeeming, and it's standard for all UITFs, not unique to DragonFi. For long-term funds, the small difference between the last shown price and your actual price rarely matters much over your full investment horizon. For the step-by-step, see the "How do I invest in a fund?" and "How do I sell or redeem a fund?" articles by DragonFi.