Why aren't mutual fund values calculated in real-time?

[Viper GTS]

I've been watching the funds my 401k is in for the last few weeks, & I've noticed something annoying:

The fund values are not calculated in realtime, I can only see how I did for the day a few hours after the session has closed.

What's up with that? Is it really that hard to figure in realtime? Even if it were a few seconds behind it wouldn't be that big of a deal, would it? How are they traded mid-day if their value isn't calculated?

Fidelity Freedom 2040

I'm confused...

Viper GTS

 

[burnedout]

Rules and Regulations promulgated under the Investment Company Act of 1940

Rule 22c-1 -- Pricing of Redeemable Securities for Distribution, Redemption and Repurchase

"The current net asset value of any such security shall be computed no less frequently than once daily, Monday through Friday, at the specific time or times during the day that the board of directors of the investment company sets, in accordance with paragraph (e) of this section [Editor's note: It appears this should be "paragraph (d) of this section,".] except on:" blah blah blah

To answer one of your questions, share prices are typically traded using either the previous trading day's NAV or the closing NAV from the day of the trade.

The fund company probably has no desire to calculate NAV more than once daily because of inherent costs and volatility from redemptions.

Contact the BoD of the particular fund. If you own enough shares, submit a proposal for the next shareholders meeting. Doubt they would agree to it though.

 

[Viper GTS]

I doubt my ~500 shares would sway their views much.

I guess it would be a PITA to calculate that many levels (fund comprised of funds comprised of... etc), but it would be nice to have a realtime update.

Oh well.

Thanks for the info.

Gregg

 

[RossMAN]

I wish my 401k was calculated in real time but it's not

 

[rubenswm]

ya
What funds are you guys in?
<-- Janus Twenty
but I will be switching soon.