Fidelity mutual funds trade once per day, after the stock market closes at 4 p.m. Eastern Time
When you buy or sell a Fidelity mutual fund, your order does not execute immediately. Instead, Fidelity collects all buy and sell orders placed during the trading day and processes them together at a single price calculated after the market closes. That price is called the net asset value (NAV), and it reflects what all the stocks and bonds inside the fund are actually worth at the end of the day.
This once-a-day pricing is true for nearly all mutual funds, not just Fidelity's. It is different from stocks or exchange-traded funds (ETFs), which trade continuously throughout the day at changing prices. If you place an order to buy a Fidelity mutual fund at 2 p.m., you will get the 4 p.m. price, not a price from 2 p.m.
Orders placed after 4 p.m. Eastern Time are held and processed the next trading day at that day's closing price. Weekends and market holidays do not have closing prices, so orders placed on Friday after 4 p.m. will not trade until Monday's close (unless Monday is a holiday).
Key Takeaways
- All Fidelity mutual fund orders trade at the closing price calculated after 4 p.m. Eastern Time, regardless of when during the day you placed the order.
- Orders received after 4 p.m. Eastern Time are processed the next business day at that day's closing price.
- The closing price is the net asset value (NAV), which is the total value of all holdings in the fund divided by the number of shares outstanding.
- Mutual funds trade once daily, while stocks and ETFs trade continuously throughout the market day.
- Market holidays and weekends mean no trading occurs, so Friday afternoon orders may not settle until Monday.
How the 4 p.m. cutoff works in practice
Fidelity's deadline for same-day trading is 4 p.m. Eastern Time, which is when the stock market closes. If you submit an order before that time—whether at 9:30 a.m. or 3:59 p.m.—it goes into the queue for that day's close. You will receive the NAV calculated at 4 p.m., even if the market moved significantly between when you placed the order and when it settled.
This matters because you cannot time a mutual fund purchase or sale to a specific intraday price. If you believe a fund will drop in value and you want to sell before that happens, you cannot do it mid-morning; your order will still execute at the 4 p.m. price. This is a trade-off built into mutual fund structure—the once-daily pricing protects long-term fund holders from rapid traders trying to exploit small price movements.
If you place an order after 4 p.m. Eastern, Fidelity treats it as if it arrived the next business day. That means a Friday evening order does not trade Friday; it trades Monday's close (or Tuesday's if Monday is a holiday). This can matter if you are trying to move money quickly or if market conditions shift over the weekend.
What happens between when you order and when it settles
After you place an order, Fidelity does not immediately debit your account or credit your fund shares. Instead, the order sits in a queue. At 4 p.m., Fidelity's systems calculate the NAV for each fund—the total market value of all securities held, divided by the number of outstanding shares. That single price applies to every order placed that day.
Settlement typically occurs the next business day. For a purchase, money leaves your cash account and fund shares appear in your holdings. For a sale, the reverse happens: fund shares disappear and cash appears. You can see the pending order in your account during this window, usually marked as "pending" or "in process."
If you are moving money between Fidelity accounts or between a bank account and Fidelity, settlement times can vary. A transfer from an external bank may take several business days to clear before Fidelity can invest it, which means your order may not execute until the money actually arrives.
Why mutual funds trade once daily instead of continuously
Mutual funds hold dozens or hundreds of securities, and not all of them trade on the same schedule or with the same liquidity. Some holdings are bonds that trade over-the-counter, or international stocks that trade on foreign exchanges. Waiting until after the U.S. market closes allows Fidelity to gather prices for all those holdings and calculate an accurate NAV.
Once-daily pricing also protects the fund's long-term shareholders. If the fund allowed continuous trading at intraday prices, short-term traders could exploit small price movements and shift costs onto buy-and-hold investors. By pricing once daily, the fund discourages rapid trading and keeps the fund's expenses lower for everyone.
This structure is mandated by the Securities and Exchange Commission (SEC) for mutual funds. ETFs, by contrast, are allowed to trade continuously because they hold a simpler basket of securities and can be priced in real time.
How to time your order if you are concerned about price movement
Because you cannot control the exact price you receive, the best approach is to focus on the long term rather than trying to time the market. If you are investing for retirement or a goal years away, whether you buy at today's 4 p.m. price or tomorrow's is unlikely to matter much.
If you do want to place an order, submit it before 4 p.m. Eastern Time on a business day. There is no advantage to submitting it early in the morning versus late in the afternoon—both get the same closing price. The only reason to submit early is to confirm the order went through and to see it reflected in your account sooner.
If you are selling a fund because you believe it will drop in value, remember that you cannot avoid the 4 p.m. price by selling quickly. Your order will execute at that day's close no matter when you submit it. If you want to move money to a different fund, you can place both a sell order and a buy order on the same day, and both will settle at their respective closing prices.
Fidelity mutual funds on weekends and market holidays
The stock market is closed on weekends and federal holidays, so mutual funds do not trade on those days. If you place an order on Saturday, Sunday, or a holiday like Thanksgiving or Christmas, Fidelity holds it and processes it at the next business day's close.
This can create a gap between when you place an order and when it settles. A Friday evening order waits until Monday's close. A Monday evening order placed on a day before a holiday waits until the day after the holiday. During volatile market periods, prices can move significantly over a weekend or holiday, so your order may settle at a very different price than you expected when you placed it.
You can check Fidelity's holiday calendar on their website to see which days the market will be closed. If you are planning a large transaction, it is worth checking whether a holiday is coming up.
Frequently Asked Questions
Can I cancel a mutual fund order after I place it but before 4 p.m.?
Yes, as long as you cancel before 4 p.m. Eastern Time on the day you placed the order. Once 4 p.m. passes, the order has been executed at the closing price and cannot be cancelled. You would have to place a new sell order if you want to reverse it. Check your Fidelity account to see the cancellation option; it is usually available in the pending orders section.
What if I place an order at 3:59 p.m. and the market crashes in the last minute?
Your order still executes at the 4 p.m. closing price, which will reflect the crash. You cannot avoid intraday price movements by timing your order within the trading day. This is one reason mutual funds are considered less suitable for active traders than stocks or ETFs.
Do Fidelity ETFs trade at the same time as mutual funds?
No. Fidelity ETFs trade continuously throughout the market day, just like stocks. You can buy or sell an ETF at any time the market is open and receive the price at that moment. This is one key difference between ETFs and mutual funds.
If I buy a mutual fund on Monday, when do I own the shares?
You own the shares as of the settlement date, which is typically the next business day (Tuesday in this example). However, the price you pay is Monday's closing NAV, not Tuesday's. The gap between trade date and settlement date is standard for mutual funds.
Does Fidelity charge a fee if I sell a mutual fund the day after I buy it?
Fidelity does not charge a trading fee for buying or selling most of its own mutual funds. However, some funds have short-term redemption fees if you sell within a certain period (often 30 to 90 days). Check the fund's prospectus to see if this applies. This is different from a trading fee—it is a penalty built into the fund to discourage rapid trading.