share isa (part 2)

onfire2125

Are all share isa returns based on the price of a unit?? Do some or any pay a dividend?

Mike

lpgm

onfire2125 wrote: »

Are all share isa returns based on the price of a unit?? Do some or any pay a dividend?

*You* have a fund in your ISA, so you get units. The price of a unit depends on many things - the prices of the things the fund owns, dividends paid, interest paid, different costs... If you have income units, rather than accumulation units, then you'll get paid the income - those dividends and interest payments - rather than have them automatically reinvested.

If you bought individual shares and put them in your ISA, then those shares might pay out dividends.

So it can get a bit complicated. Remember the ISA bit is not the important thing. You're asking about the difference between an individual share and a fund.