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. This price is called the net asset value (NAV), and it reflects what the fund's holdings are worth at the end of that day.

If you place an order before 4 p.m. Eastern on a business day, it will trade at that day's closing NAV. If you place an order after 4 p.m. or on a weekend or holiday when the markets are closed, your order will not process until the next business day's closing price.

Key Takeaways

  • Fidelity mutual funds settle once daily at 4 p.m. Eastern time, using the NAV calculated after the stock market closes.
  • Orders placed before 4 p.m. on a business day execute at that day's closing price; orders after 4 p.m. execute the next business day.
  • The NAV is the fund's total assets minus liabilities, divided by the number of shares outstanding.
  • Mutual funds differ from stocks and exchange-traded funds (ETFs), which trade continuously throughout the day at changing prices.

How the daily trading process works

Fidelity receives orders from thousands of investors throughout the day. At 4 p.m. Eastern, after the New York Stock Exchange closes, Fidelity's fund managers calculate the NAV for each fund based on the closing prices of all the securities the fund holds. This single price applies to every order received that day, whether someone bought at 9:30 a.m. or 3:59 p.m.

The NAV is calculated by taking the total market value of all the fund's holdings, subtracting any liabilities (such as management fees owed), and dividing by the number of fund shares outstanding. This means the price you pay or receive depends entirely on what the fund's investments were worth at market close, not on when during the day you submitted your order.

Settlement—the actual transfer of money and shares—typically occurs one to two business days after the trade date. This means if you sell a fund on Monday, the cash may not appear in your account until Wednesday.

What happens if you trade after market close

Orders placed after 4 p.m. Eastern or on days when the markets are closed (weekends, federal holidays, or days when the New York Stock Exchange is shut) will not process until the next business day. Your order will execute at the NAV calculated at 4 p.m. on that next business day.

If you place an order on Friday at 5 p.m., it will not trade until Monday at 4 p.m. (assuming Monday is a business day). If you place an order on a Saturday, it will trade Monday at 4 p.m. This delay is built into how mutual funds operate and applies to all mutual fund companies, not just Fidelity.

Differences between mutual funds and other investments

Mutual funds trade once daily at a fixed price. Stocks and exchange-traded funds (ETFs), by contrast, trade continuously throughout the day at prices that change by the second based on supply and demand. If you buy a stock at 10 a.m., you pay the price at that exact moment, not a price calculated hours later.

This daily-pricing structure is one reason mutual funds are often used for long-term investing rather than active trading. Investors who want to buy and sell frequently during the day typically use stocks or ETFs instead. Fidelity offers both mutual funds and ETFs, so you can choose based on your investment strategy.

How to check your fund's trading status

When you place an order on Fidelity's website or mobile app, the system will show you the NAV and tell you when the trade will execute. If you place an order before 4 p.m. on a business day, it will say something like "This order will be executed at today's closing price." If you place an order after hours, it will tell you the order will execute at the next business day's closing price.

You can also call Fidelity directly at 1-800-343-3548 to confirm when an order will trade. Representatives can tell you the current NAV, when your order will process, and when you can expect the cash or shares to settle in your account.

Frequently Asked Questions

Can I cancel a mutual fund order after I place it?

If you place an order before 4 p.m. Eastern on a business day, you can usually cancel it until the market closes. Once 4 p.m. passes, the order has already executed at the closing NAV and cannot be cancelled. Contact Fidelity immediately if you need to cancel—the sooner you call, the better your chances of catching it in time.

Why do mutual funds trade once a day instead of continuously?

Daily pricing protects all fund shareholders by ensuring everyone who trades on the same day pays or receives the same price. If prices changed throughout the day, investors who traded at different times would get different values for the same fund, which could be unfair. This structure also reduces trading costs for the fund.

What if the market is closed on the day I place my order?

Your order will not execute until the next business day when the market opens and closes. For example, if you place an order on Thanksgiving (when the market is closed), it will trade at 4 p.m. the next business day. Fidelity's website will tell you when your order will execute.

Do I pay the same price as someone who traded at a different time that day?

Yes. Everyone who places an order on the same business day, whether at 9:30 a.m. or 3:59 p.m., receives the same NAV calculated at 4 p.m. that day. This is one of the defining features of mutual fund trading.