What's the difference between "Inc" & "Acc" in a fund?

Izzy_Skint_2

Hello all,

I am currently tracking funds through Morningstar.co.uk before I decide which fund(s) to invest in. I have been recommended the Aberdeen Ethcal Fund and entered it into the fund search for portfolio tool on Morningstar. Lo and behold 4 funds come up, these are :

Aberdeen Ethical World A Acc
Aberdeen Ethical World A Inc
Aberdeen Ethical World I Acc
Aberdeen Ethical World I Inc

Simply put, what is the difference between them please? The difference between the "A" and the "I" and between the "Acc" and the "Inc".

Many thanks

Graham

Lokolo

Acc - Accumlation. The dividends just go back into the fund pot, this rising the unit price.
Inc - Income. Dividends are paid out per unit.

Acc will have a higher unit price than Inc as Acc dividends just raise the unit price. Inc gets paid to unit holders.

RayWolfe

Like he said.
The A & I indicate different classes of unit. Probably, in this case, I for institutional; A for retail; you.
Different classes of unit are because of trail/no trail commissions; deal size; front loading ... all sorts of reasons, most of them to confuse us poor punters. And most of them not even available to us.