To sell soon and then dripfeed back in?

Lokolo

atypical wrote: »

Does the £1000 minimum for each fund apply in this case? Or the £50 minimum?

When I had my £100 a month regular contribution I once deposited an extra £100 using debit card, phoned them up and asked them to trade that as well and they did.

So to be honest, not sure on the rules, I think as long as you do it on the 7th or whatever the day is, they don't mind how small it is (£50 minimum though!)

Jake'sGran

Primrose wrote: »

The other thing to bear is mind is whether your funds are invested in an ISA wrapper. If they are and you withdraw some of the money, obviously it can't be replaced. I suppose you could liquidate some of your holdings into cash within an ISA for a period if you're worried about a possible market fall but I believe that cash holdings, even in an ISA may be subject to tax? Perhaps somebody can confirm whether this is correct or not.

I was going to comment on this yesterday but then realised that funds held in an ISA can be changed to different funds but kept in the same ISA. I may have this wrong but as I don't intend to sell it's academic.

LongTermLurker

Jake'sGran wrote: »

Originally Posted by Primrose
The other thing to bear is mind is whether your funds are invested in an ISA wrapper. If they are and you withdraw some of the money, obviously it can't be replaced. I suppose you could liquidate some of your holdings into cash within an ISA for a period if you're worried about a possible market fall but I believe that cash holdings, even in an ISA may be subject to tax? Perhaps somebody can confirm whether this is correct or not.

I was going to comment on this yesterday but then realised that funds held in an ISA can be changed to different funds but kept in the same ISA. I may have this wrong but as I don't intend to sell it's academic.

You're both correct. There are three options; two good, one very bad...

1) SELL investments into your ISA - the money stays in your ISA and can be reinvested at will. However, while you're in cash, you'll earn little or no interest and what you do get will be taxed.

2) REINVEST/RE-ATTRIBUTE some of your investments (as I've done) - here you sell one set of units/shares and immediately buy some different units/shares - if you go with a discount broker like HL you may or may not pay commission on your purchase. In other words, depending on what you buy, you may end up pretty much with a straight swap or you may pay, say, 0.5% commission.

3) SELL AND WITHDRAW investments - the cash leaves your ISA forever.