Mutual fund: When does the fund manager buy shares?

Suppose, I’ve a SIP right this moment of 10k

Will the fund supervisor purchase the shares in that mutual fund right this moment instantly? Or he can look ahead to 2-3 days? How a lot time does he have to purchase it?
Does he purchase it utilizing a restrict order or market or it may be something?

Each are his choices.

He can look ahead to any variety of days earlier than shopping for

However we get the nav of that day. Is it honest to purchase the shares later at the next or lower cost?What’s the benefit of ready?

@ShubhS9 @Meher_Smaran

NAV of that day is after money element, shares, and many others. NAV will go increased if he has more money than yesterday and inventory costs didn’t change.

After you purchase, you can not contemplate that your cash is sitting in money as a result of the fund supervisor didn’t purchase any shares that day.

If after your cost, the ratio of shares:money within the fund is 80:20, 80% of your cash is then already in these shares. That’s how NAV works.

You may also suppose like your cost is used to service another person’s redemption. So that you get his MF items and he will get your cash.

What’s the benefit of ready?

You’re paying an expense ratio to the fund supervisor to let him work out when to purchase. It’s the AMC’s choice in the long run