When you instruct Plum to sell your investment, Plum instructs the product provider to sell the fund units that correspond to the requested amount at the next trading cycle of that fund.
Those units will be sold at the price of the next trading cycle. This means the sale price of the fund isn’t yet known when you instruct Plum to sell. If the price moves up the next day, you will get a bit more than you asked to sell out. If the price moves down, you will get a bit less.
For example: if you have 2 units of the Imaginary Fund (each worth £50), at a total value of £100, and you tell Plum to sell £50, we’ll put an order in to sell 1 unit. Because the funds trade once a day, the price at which you will sell this unit isn’t known until the transaction is completed, 2 days after.
- If the price grows to £51 per unit, you will get £51
- If the price drops to £49 per unit, you will get £49
If you sell out all of your Funds investments, it may also be that you receive an amount that is slightly lower than the amount you requested. This is because the product provider charge their monthly fee on the units sold, for the amount of time that month you had funds invested. This is around 0.01% of the average balance of that month (0.15% annually), and will be reflected on your statements.
This is further explained in the Investment Terms and Key Features Document (which you can find in the Settings / Documents section of the Plum bot).