Investment Trusts or Unit Trusts

dunstonh

Can you point me to a platform which will allow me to drip, say £100/ month into a range of investment trusts from any provider without having to pay normal stockbroking charges?

You cant. I thought you were on about the extra charges that bundled platforms have if you hold non commission paying investments. Sorry.

sabretoothtigger

Halifax let you drip feed for 1.50 each IT fund each month and its £5 to 'withdraw' amounts under £250

moneylover

do you have a link please?
Can you also buy from Alliance Trust on a monthly basis?

sabretoothtigger

http://www.halifax.co.uk/sharedealing/our-accounts/halifax-sharebuilder/


Work out the percentage costs too. £150 or 1% is probably the minimum reasonable amount I think

GrowingMyOwn_2

Many thanks Sabretooth.

Doc_N

moneylover wrote: »

do you have a link please?
Can you also buy from Alliance Trust on a monthly basis?

Indeed you can. Very easily, acroos a wide range of ITs, and with very low charges.

moneylover

JamesU wrote: »

Certainly worth researching ITs individually on Investor Chronicle, lots of useful info there on ITs all the time. For example CTY IT considered one of the "magnificent seven" ITs as in link below. Take care with the date of articles and their current relevance though.

http://www.investorschronicle.co.uk/InvestmentGuides/Funds/article/20110405/6161b2f6-5f70-11e0-a1e9-00144f2af8e8/Investment-trusts-the-Magnificent-Seven.jsp

JamesU

the whole of this thread very useful, thank you everyone.
Obviously dividends are part of what you would consider when considering any investment trust but presumably the article referred to in link above is mainly for the benefit of people who are seeking income rather than growth? Is that right? If you wanted to re-invest the dividends from any investment trust you would have to buy more shares or can you have automatic dividend re-investment? Presumably there is a charge for this and it might not be worthwhile to pay it if the divi was usually below a certain amount. I understand (I think!) that if you buy unit trusts you can go for an accumulation fund rather than income version of the fund but what happens with ITs please?
Does it work any differently re dividends depending on whether your ITs are in an ISA or not? Becasue obviously you are normally being charged a fee for the ISA wrapper year on year. My ITs won't be in an ISA.
Many thanks

atush

Can you point me to a platform which will allow me to drip, say £100/ month into a range of investment trusts from any provider without having to pay normal stockbroking charges?

if you are OK with a single provider, but differnt trusts in one, then Invesco perpetual could be good. As they have a min of 20 quid/m in their savings scheme, you could for 100 quid a month invest in 5 different picks out of 14 trusts. I invest in the Inv Perpet inc and grwth.

Ark_Welder

moneylover wrote: »

If you wanted to re-invest the dividends from any investment trust you would have to buy more shares or can you have automatic dividend re-investment?...

DRIP! No! Not an insult, but Dividend ReInvestment Plan.

Again, availability and the costs depend upon the platform. With IT companies directly the costs, if any, should be minimal. Halifax Share Dealing has a 1% charge with a maximum of £1.50.

An alternative is to allow the income from several ITs (or funds) to accumulate and to then make periodic one-off purchases. This does take a bit more effort on your part, but it does have the benefit of allowing you to maintain balance to your portfolio by using all of the income to make a specific purchase without having to sell anything.

Should be the same within and without an ISA, but check the relevant scheme T&C's.

moneylover

cheerfulcat wrote: »

Link to the offer here. Doesn't need to be in an ISA.

I planning to buy some ITs so the offer of free trades with Alliance Trust is very attractive. However they will normally charge £12.50 for a trade so unless I plan to have ITs that I will keep and not touch for a long time am not sure there is any advantage.
I can just buy through the cheapest online dealer and then when I want to add more dealings or sell original buys itwont have cost me any more overall once a few trades have balanced things out. I believe there is an online dealer whose trades are about £6.50 but I don't know which one this is,if anyone can help out please. I need a service which is reliable and which allows limit orders to be placed for shares. Thank you!