I know shamefully little about my ISA!

edinburgher

Ok, time to ask what are probably some very stupid questions about my investment ISA. 2010/11 will be the first full financial year I've had one, as last time I started investing I ended up cashing out after 10 months to pay off my student debts (best thing I ever did with money!)

I have a few queries about what happens to my ISA (Fidelity) at the end of the financial year, charges and dividends. I have taken the time to go through the prospectuses for the funds I invest in, but have only found part answers to the questions.

1. I fund my ISA with a monthly payment of £180. When the end of the financial year is reached, will Fidelity automatically open a new 'pot' for 2011/12 unless I inform them otherwise? Will I see seperate accounts for each year when I log in to my online account, or just one figure for all monies invested to date?
2. I know what the charges levied are and that they are deducted from growth in the funds (paraphrasing, sorry if it's clear as muck). What I can't find is when I'm charged. Is it typically at the end of the financial year/at the start of each month/ongoing?
3. Two of the funds pay an annual dividend. I know when the 'ex-dividend' date is - am I right in thinking that this is the date that someone needs to hold units in the fund by if they wish to receive the dividend? Also, how can I check when the dividend is received/converted into additional shares in the fund?

Sorry if any of these are particularly daft - I've got to learn somewhere

Linton

I have Fidelity ISAs....

1) I dont believe Fidelity will automatically open a new ISA for you next year - suggest you ask them. I have always found their helpdesk quick, knowledgable and helpful.

Unlike some other ISA providers Fidelity do keep each year as a separate account, all visible from the registered login. However there is a "holdings & Transactions View" where the info is sorted by investment.

2) There may (or may not) be a charge to purchase the funds - it depends what the fund is. This is taken off your payment at the time. There are no on-going charges. The expenses of running the individual funds are already included in the published prices.

3) The ex-dividend date is the date when it is determined what you own in the funds and therefore what dividends are due. If you look at the transactions from your login you will see the purchase of additional units.

edinburgher

Linton, thanks for some very helpful answers.

1) I'll send them a message shortly.
2) So, if I invest £100 in a fund with a 3% charge via Direct Debit they will essentially use £97 of the DD to purchase units in the fund?
3) The transaction log would be useful if I'd had any dividends - to the best of my knowledge I missed the ex-dividend dates so won't see this sort of information yet. Is there not a standard section in the prospectus/documentation that details when they will be paid?

Linton

(2) Yes, your payment includes both the charge and the units to be bought.

(3) Sorry, dont know. One of my funds pays out monthly, others more rarely The Fidelity help desk should be able to answer.

edinburgher

Ideal, I've contacted them with the unanswered questions.